Isle Of Man Moves To Automatic Exchange Of Information
Isle Of Man Moves To Automatic Exchange Of Information
The Isle of Man government has announced that it is to opt for the automatic exchange of information with regards to interest gained on the accounts held by depositors resident in countries within the European Union in accordance with the European Savings Tax Directive (EUSD). The move is further evidence of the Isle of Man’s compliance in international tax cooperation and transparency matters.
The new tax policy, which takes effect from July 1, 2011, was announced on June 24 by Treasury Minister Allan Bell when addressing the annual Organisation for Economic Co-operation and Development (OECD) Forum in Paris. This means the withholding tax option currently available to customers having accounts with Isle of Man banks by virtue of the transitional arrangements in the EUSD will be withdrawn.
Minister Bell commented, “The Isle of Man has always been at the forefront of tax co-operation and my announcement today is further testament to that. The global financial crisis has delivered a demand to all countries large and small to engage further in international tax co-operation and align their policies with international benchmark standards. Our decision today to move to automatic exchange of information under the EU Savings Directive is a clear sign that we intend to continue to lead the way in international tax co-operation and transparency. This is a signal to our trading partners and investors alike that we can continue to be relied upon and that our name is associated with probity and foresight.”
Since 2000 the Isle of Man has developed, signed and ratified Tax Information Exchange Agreements (TIEAs) and Double Taxation Agreements (DTAs) and now has fifteen of these OECD standard agreements. As the G20 summit this year the Isle of Man was benchmarked by the OECD to have achieved ‘white list’ status; a country that has substantially met international standards of tax transparency and cooperation.
Minister Bell added: “The invitation to the Isle of Man government to speak at the OECD Forum was a great honour. We believe that small countries such as ourselves have a lot to gain by working with international organisations such as the OECD, but we also have much to offer and we have long contributed to the ongoing development of international standards. We have consistently shown that we understand at a strategic level what actions we need to take and what changes we need to make in order to maintain our position as a dynamic International Business Centre of choice. As such our work does not, and cannot, stop on these matters and we will be making further tax cooperation announcements throughout this year and beyond.”
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