A FINANCIAL secrecy index created by tax reform campaigners has ranked the Isle of Man 24th out of 60 jurisdictions for lack of transparency.
Tellingly, the index produced by the Tax Justice Network — a vociferous critic of the Isle of Man — places the US state of Delaware at the top of its league table of tax havens, followed by Luxembourg, Switzerland, the Cayman Islands and the City of London.
This suggests these leading economic centres are more culpable of promoting international financial secrecy than the offshore centres they've attacked since the global financial crisis began.
It comes as an unexpected boost for the Island which also welcomed a favourable report in the Foot review of Britain's Crown Dependenices and Overseas Territories published last week.
The financial secrecy index gives each jurisdiction an 'opacity' score for its transparency, or otherwise, in tax affairs, and then weights each by the scale of their global financial activity to provide a ranking.
Delaware has an opacity score of 92 and coupled with a high global scale weight ranks it at number one.
The City of London has a low opacity score of just 42 but its importance to world financial activity ranks it at number 5.
The Isle of Man's opacity score of 83 is lower than 41 of the other jurisdictions listed including Jersey.
Treasury Minister Allan Bell said: 'This proves quite clearly what we've been saying.
'We were an easy scapegoat, an emotive target.
'The focus of attention should move to where the real culprits lie.'
WHAT DO YOU THINK?Send your comments to bizviews@newsiom.co.imYOUR COMMENTSThe only reason we are ranked so low is that we are smaller. An opacity score of 83 is shameful for a jurisidiction which is constantly claiming that it is transparent. Mr. Bell, if we are honest and sincere about being an internationally responsible finance centre, we need to get that score way down!
MARCThere is something slightly disturbing about recent events and the reaction to them. Only being the 6th best/worst place to stash cash is not really a good thing either way. Failing to accept that the much out dated VAT agreement has come to an end is seen a surprise, is well, not a surprise. That independence might include that health care when we're not on our indepenent Isle is not free is, again, apparently, a surprise. And it will no doubt be a surprise when On line gaming will no longer be tolerated. As we will all be surprised when the Isle of Man is not the centre for space tourism.
FOOD4THOUGHTThe whole issue of 'transparency' versus 'opacity' on the IoM could be quickly resolved by the following question being put to Tynwald: "will the Treasury Minister tell us what steps are being taken by the Treasury & the FSC to identify the nature of the secrecy that is alleged to permeate parts of our financial services industry so that the IoM government can rid the island of this myth that is so damaging to the reputation of the IoM & its economy?" This reply from the Finance Minister would settle the question: "the IoM is neither a tax haven nor a secrecy jurisdiction & I am asking the Treasury to meet with Tax Research UK in order that this false accusation is resolved once & for all" Simple -- but it's not going to happen!
JIM FOR JUSTICE http://ksfiom-blog.blogspot.com