Ugland House is a building located in

George Town, Cayman Islands George Town is the capital and largest city in the Cayman Islands, located on Grand Cayman. , the city had a population of 34,921, making it the largest city (by population) of all the British Overseas Territories. George Town is the heart of ...

. Located at 121 South Church Street, the building is occupied by the

law firm A law firm is a business entity formed by one or more lawyers to engage in the practice of law. The primary service rendered by a law firm is to advise clients (individuals or corporations) about their legal rights and responsibilities, and to r ...

Maples and Calder Maples Group (previously Maples and Calder) is a multi-jurisdictional firm providing legal and financial services, headquartered in the Cayman Islands. It has offices in many financial centres around the world, including several tax neutral jur ...

and is the

registered office A registered office is the official address of an incorporated company, association or any other legal entity. Generally it will form part of the public record and is required in most countries where the registered organization or legal entity ...

address for 40,000 entities, including many major investment funds, international joint ventures and capital market issuers.

Investigation by the U.S. government

During his first presidential campaign, U.S. President

Barack Obama Barack Hussein Obama II ( ; born August 4, 1961) is an American politician who served as the 44th president of the United States from 2009 to 2017. A member of the Democratic Party, Obama was the first African-American president of the U ...

referred to Ugland House as "the biggest tax scam in the world", raising questions over the number of companies with a registered office in the building. President Obama subsequently nominated

Jack Lew Jacob Joseph Lew (born August 29, 1955) is an American attorney and politician who served as the 76th United States Secretary of the Treasury from 2013 to 2017. A member of the Democratic Party, he also served as the 25th White House Chief of S ...

to Treasury Secretary in 2013, despite objections that Mr. Lew had invested heavily in funds in Ugland House while he worked as an investment banker at Citigroup during the 2008 financial meltdown, with President Obama stating that he was not concerned about Mr. Lew's past financial transactions. In 2008, the United States

Government Accountability Office The U.S. Government Accountability Office (GAO) is a legislative branch government agency that provides auditing, evaluative, and investigative services for the United States Congress. It is the supreme audit institution of the federal govern ...

(GAO), an independent body of the

U.S. Congress The United States Congress is the legislature of the federal government of the United States. It is Bicameralism, bicameral, composed of a lower body, the United States House of Representatives, House of Representatives, and an upper body, ...

, investigated the nature of entities registered in the

Cayman Islands The Cayman Islands () is a self-governing British Overseas Territory—the largest by population in the western Caribbean Sea. The territory comprises the three islands of Grand Cayman, Cayman Brac and Little Cayman, which are located to the ...

and at Ugland House. The investigation involved reviews of documentation as well as interviews with officials from the

Internal Revenue Service The Internal Revenue Service (IRS) is the revenue service for the United States federal government, which is responsible for collecting U.S. federal taxes and administering the Internal Revenue Code, the main body of the federal statutory ta ...

Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...

, the Department of the Treasury, the

Department of Justice A justice ministry, ministry of justice, or department of justice is a ministry or other government agency in charge of the administration of justice. The ministry or department is often headed by a minister of justice (minister for justice in a v ...

, the

Overseas Private Investment Corporation The Overseas Private Investment Corporation (OPIC) was the United States Government's Development finance institution until it merged with the Development Credit Authority (DCA) of the United States Agency for International Development (USAID ...

, and the Export-Import Bank of the United States. The GAO found that 95% of the entities with a registered office address at Ugland House are not wholly owned by U.S. persons. Also, the GAO validated the reasons why the Cayman Islands has become a popular

jurisdiction Jurisdiction (from Latin 'law' + 'declaration') is the legal term for the legal authority granted to a legal entity to enact justice. In federations like the United States, areas of jurisdiction apply to local, state, and federal levels. Jur ...

for

international finance International finance (also referred to as international monetary economics or international macroeconomics) is the branch of financial economics broadly concerned with monetary and macroeconomic interrelations between two or more countries. Inter ...

and

business Business is the practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entered into for pr ...

, including the country's reputation "as having a stable and internationally compliant legal and regulatory system." In an interview with the GAO, representatives from the U.S. Internal Revenue Service (IRS) cited "the Cayman Islands’ reputation for regulatory sophistication" and "legal protections for creditors and investors" as factors that might attract legal financial activity. In addition, the GAO report explained how U.S. government trade promotion agencies use the Cayman Islands and entities registered at Ugland House. The Export-Import Bank told the GAO that it has used the Cayman Islands to support the sale of

aircraft An aircraft is a vehicle that is able to fly by gaining support from the air. It counters the force of gravity by using either static lift or by using the dynamic lift of an airfoil, or in a few cases the downward thrust from jet engines ...

manufactured in the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

. Between 2003 and the time of the GAO investigation, the Export-Import Bank had been involved in supporting 42 aircraft financing deals in the Cayman Islands. Also, officials from the Overseas Private Investment Corporation (OPIC), another U.S. government agency, told the GAO that "one-third to half of private-equity funds in which it has invested have been organized in the Cayman Islands." OPIC officials also said that "foreign investors in private-equity funds that they are involved with value the Cayman Islands' reputation for legal neutrality towards investors from different jurisdictions." The Cayman Islands have worked to promote governance and regulation and have over the years collaborated with governments in the major economies to introduce tax information agreements such as FATCA and co-operation agreements with securities regulators, aimed at promoting a transparent legal regime for global business.

References

External links

Ugland House Explained
a website by the law firm that maintains Ugland house
Maples and Calder
the law firm that resides at Ugland House {{coord, 19.2920, N, 81.3854, W, source:wikidata, display=title Buildings and structures in George Town, Cayman Islands International taxation Offshore finance Tax avoidance Law offices Law of the Cayman Islands

Investigation by the U.S. government

See also

References

External links