The Isle of Man's strategy of striking bilateral tax agreements with other jurisdictions continues to seek out new partners. The latest TIEA (tax information exchange agreement) has been concluded with New Zealand.
This follows DTAs (double taxation agreements) with EU member states Belgium and Estonia earlier in the year. The Island is acknowledged internationally as being at the forefront of tax co-operation, a fact that helps build its strength as a quality international business centre. Treasury Minister Allan Bell believes the latest agreements will lead to further political, economic and cultural ties.
The New Zealand deal is the seventeenth that meets OECD standards on international tax transparency and co-operation. The official signing ceremony was held at New Zealand House in London. Mr Bell represented the Isle of Man Government and New Zealand was represented by its UK High Commissioner Derek Leask.
The two-part package comprises a TIEA based on the OECD model for the exchange of tax information and an agreement for the allocation of taxation rights over certain income of individuals and establishing a mutual agreement procedure in respect of transfer pricing adjustments.
Mr Bell said: 'Part of the Isle of Man's economy is based on financial services, and it is vital such financial services operate to the standards required by the global economic community. The Isle of Man has been committed to the OECD standards of transparency and effective exchange of information for tax purposes for over eight years.'
A DTA, such as those signed with Belgium and Estonia are benchmark agreements between countries to remove double taxation obstacles to the development of economic relations, and so facilitates the exchange of goods and services and movements of capital, technology and people. It will also act to prevent tax evasion, and delivers the OECD agreed international standard on tax transparency and exchange of information.
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