The head of the Cayman Islands Financial Services Association has told American lawmakers that his country is getting a bad rap from the United States (US) over its offshore tax policies.

"What does trouble us to the point where we are bemused, bothered and bewildered is the rhetoric, the constant reference to Cayman," Tony Travers told journalists after expressing his displeasure to US legislators.

He said further that the Cayman Islands has been incorrectly aligned with uncooperative tax havens like Andorra, Monaco, and Liechtenstein.

"The reality of the situation is, we have a full transparency treaty with the United States," Travers said, adding that the Cayman Islands is "an accomplished international financial centre, supported by an impressive list of professionals who are able to offer a broad range of services."

President Barack Obama, in a recent White House address, had singled out the Cayman Islands as a tax haven. A US congressional report said the US loses about US$100 billion to tax havens annually.

Tax havens

Consequently, Obama has called for curbing offshore tax havens and corporate tax breaks to collect billions of dollars more from multinational companies and wealthy individuals.

The president seeks to make good on his campaign promise to end tax breaks "for companies that ship jobs overseas".

He estimated the changes would raise US$210 billion over the next decade.