New tax agreement marks new phase in Irish relations

CLOSER economic and business ties with Ireland were cemented with the signing of two tax information exchange agreements in Dublin.

This makes Ireland the 10th country to sign a TIEA with the Isle of Man as part of a programme to develop closer economic and taxation co-operation with other countries and it is the first such agreement between Ireland and an international financial services centre.

Treasury Minister Allan Bell and Ireland's Tanaiste and Minister for Finance Brian Cowen signed at a ceremony in Dublin on April 23.

Minister Bell said: 'These agreements draw to a close a period during which the Irish government had concerns that its citizens and businesses might abuse the Isle of Man's financial services and evade taxes at home.'

He believes they will provide a platform to significantly strengthen business and economic ties with Ireland.

The first agreement is based on the Organisation for Economic Co-operation and Development (OECD) model for exchanging information by request on a case by case basis and the second affords relief from double taxation on certain individual income and establishes a mutual procedure for adjusting profits of associated enterprises.

Speaking at the signing ceremony in Dublin, Mr Bell said: 'Our two countries are close to each other geographically, culturally and historically and reaching this point where we are agreeing to work together on a number of taxation matters is a powerful confirmation of our closeness.

'These agreements represent the start of a new phase in relations between Ireland and the Isle of Man and will lead, I am sure, to the further development of our political, economic and cultural ties.'

The Isle of Man was one of the first international financial services centres to make a commitment to work with the OECD in the tax co-operation field. It already has TIEAs with the US, the Netherlands, Sweden, Norway, Iceland, Greenland, the Faroe Islands, Denmark and Finland, making up nearly half the 24 such arrangements worldwide between OECD countries and other jurisdictions.

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