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.
What Economic Substance actually asks of you
Cayman Economic Substance isn't a box-ticking exercise. It's a question about whether your entity genuinely has the activity, governance, people and records to back up its relevant activity on-island.
We help you work that out before the reporting deadline, not reconstruct it after.
Assess
We work through your entity's relevant activity, current footprint and the gaps that matter. You get a straight read on where you stand, and, if substance genuinely won't work for the structure, we'll say so.
Implement
We build the Cayman-side operating model with you: governance arrangements, CIGA evidence, decision records, expenditure, people and premises considerations, proportionate to the activity, not padded for show.
Evidence
Minutes, decision records, CIGA logs, time records, policies, reporting files and oversight notes, captured as you go, so the substance position is clear before anyone asks to see it.
Maintain
Ongoing director-level involvement and record-keeping that keeps the Cayman element credible year on year, alongside your legal, tax and regulatory advisers.
How we approach substance
Getting your Cayman substance right, step by step
Economic substance isn't a form to file. It's a position to hold. Here's how we help you build one that stands up before the records are ever asked for.
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Scope the relevant activity
We work through the entity, its structure and what it actually does in Cayman to confirm which relevant activities are in scope. No assumptions, no boilerplate: the starting point has to be right or everything downstream is wasted effort.
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Design a proportionate operating model
We map what appropriate Cayman activity, governance, expenditure, people and premises look like for your entity. The aim is a model that's credible and commercially realistic: enough to hold the position, not so much that it creates unnecessary burden or cost.
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Put governance and CIGA evidence in place
We help implement the practical pieces: board arrangements, decision records, CIGA evidence, policies, time and oversight notes. Substance is built through what you actually do, so the records need to reflect real activity as it happens.
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Run it, document it, keep it current
Once the framework is live, we stay involved: attending meetings, maintaining decision records, and keeping reporting files in order. If the strategy, structure or regulation shifts, we recalibrate rather than let the position drift.
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Support reporting and any regulator queries
When it's time to report, the evidence is already there. We help pull the reporting file together and, if questions come from the DITC or another relevant authority, we're on hand to respond with the records and context to back the position up.
Common questions
Economic Substance questions we get asked
Straightforward answers on scope, evidence and what Cayman substance actually looks like in practice.
Economic Substance
Get your Cayman substance position straight.
Talk to a senior member of the Artemis team about what your entity actually needs, before the records are called for.