Isle of Man: Isle Of Man Sets New Standard In Tax Transparency
Last Updated: 4 March 2013

The Isle of Man Government has today set a new standard in tax transparency by agreeing the main details of an automatic information exchange package with the UK.

The measures represent a closer form of tax cooperation with the UK based on the same principles as the FATCA agreement which the Isle of Man is negotiating with the USA. Under the arrangement the Isle of Man and UK Government will automatically share a wide range of financial information on their taxpayers, this information will be reported on an annual basis.

As part of the cooperation package the Isle of Man Government and HMRC today signed a Memorandum of Understanding establishing a disclosure facility for UK taxpayers to regularise their affairs, which will take effect from April 2013. The facility will give UK taxpayers a number of important assurances about what to expect after they first contact HMRC. Other measures announced today include the extension of the double taxation agreement between the Isle of Man and the UK to include the automatic exchange of tax information between the two countries.

In a statement issued today from HM Treasury, the Chancellor of the Exchequer said:  "I welcome the progress made with the Isle of Man and look forward to working on this new standard in the automatic exchange of tax information."

The Isle of Man Treasury Minister, Hon Eddie Teare, MHK, said: "The Isle of Man has long made clear that it considers automatic exchange of information to be the emerging standard. This agreement with the UK is a well-considered next step in the Island's long-established policy of being at the forefront of tax transparency and international cooperation. I am pleased that the Chancellor of the Exchequer has recognised the important leadership the Isle of Man has shown.

"We have worked closely with UK Government on the design and implementation methods of this new model of tax information exchange. This swift agreement between our two Governments will help us respond to the problems of tax evasion with appropriate immediacy. Furthermore, it will provide confidence to international investors in the Isle of Man that they are dealing with a regime which complies to global standards of best practice."

Notes:

Key measures in the agreement

  • A memorandum of understanding between the Isle of Man Government and HM Revenue & Customs signed today will introduce in April of this year a bespoke Isle of Man disclosure facility for UK taxpayers wishing to regularise their tax affairs: this will give those taxpayers a number of important assurances about what to expect after they first contact HMRC. The Isle of Man Government will assist the UK authorities in ensuring that the facility is a success;
  • The extension of the double taxation agreement between the Isle of Man and the UK to include the automatic exchange of tax information between the two countries;
  • A new agreement between the Isle of Man and the UK, closely modelled on a US FATCA agreement that will result in Manx financial institutions providing a broad range of information on the investments of UK resident taxpayers, which will then be shared automatically with the UK by the Isle of Man tax authorities. The main body of the agreement has been agreed at officer level. Both Governments will work together to minimise the burden on those businesses affected by the new system, and to ensure that detailed guidance is published as soon as possible.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

 
In association with
Press Releases from this Firm
Recent Content from this Firm
By John Spellman
By Malcolm Couch
By Richard Slee
Tools
Print
Font Size:
Translation
Channels