Substance is a question of fact, not a checklist.
Since the International Tax Co-operation (Economic Substance) Act came into force in 2019, Cayman entities carrying on a relevant activity have had to demonstrate real, evidenced presence on-island. That obligation hasn’t softened. What has changed is how seriously regulators, auditors and counterparties now read the file, and how quickly a thin substance position unravels when it’s tested.
Our view is straightforward: substance works when it’s designed into the entity from the outset, and it fails when it’s reconstructed after the fact. The Act doesn’t ask whether you’ve ticked a box. It asks whether the Cayman activity, the people, the premises, the expenditure, the governance and the records actually match the relevant activity you’ve declared.
What we help clients think through
- Relevant activity, honestly scoped. Fund management, finance and leasing, holding company, and the other categories each carry different expectations. Getting the classification right, and documented, is the foundation everything else sits on.
- Core Income Generating Activities (CIGA). Which activities need to happen in Cayman, at what cadence, and by whom. This is where most substance positions live or die.
- Governance and decision records. Board composition, meeting frequency, the quality of minutes, and evidence that material decisions are genuinely being taken on-island.
- People, premises and expenditure. Proportionate to the activity: not padded, not skeletal.
- Reporting and the annual ES return. Getting the file straight before it’s asked for, rather than after.
How we work
We’re a hands-on, senior-led practice. That means the person scoping your substance position is directly involved in the board, its meetings and its records. We work alongside your Cayman counsel and tax advisers rather than duplicating their role: our job is the operating model, the governance and the evidence that has to hold up in practice.
We’ll also tell you when a proposed structure won’t work, or when the substance you’re planning to build is out of proportion to the activity. Honest advice is part of the service, not an add-on.
The objective is to make the Cayman element clear before records are needed, rather than trying to reconstruct substance later.
Who this is for
Cayman-domiciled fund managers, finance and leasing companies, holding structures and other entities brought into scope of the Act. Whether you need a full operating model built from scratch, an independent director appointment that carries real substance weight, or a second look at an existing position before your next return, the engagement is scoped to the entity, not templated.
