Island won’t be joining Jersey on French blacklist

Tynwald buildings, Douglas

Tynwald buildings, Douglas

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Offshore rival Jersey has been blacklisted by France as it steps up its assault on so-called tax havens.

But the Isle of Man’s early moves on tax transparency means we will not be similarly blacklisted, says Chief Minister Allan Bell.

Jersey, Bermuda and the British Virgin Islands have been added to a French list of ‘non co-operative jurisdictions’, triggering withholding taxes of up to 75 per cent.

Mr Bell pointed out the Isle of Man was the first jurisdiction to commit to automatic exchange of tax information – and Jersey has only just committed to following suit.

The Manx government is also progressing its commitment to join the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.

This convention, jointly developed by the OECD and the Council of Europe, will enable a greater number of jurisdictions, including developing countries, to take part in tax information exchange networks.

The Isle of Man gave its commitment to joining the convention before the G8 Summit in June this year.

Treasury Minister Eddie Teare has outlined progress in this area in a letter to the Secretary General of the OECD Angel Gurria.

The Manx Government will be asking the Westminster government to extend the application of the convention to the Isle of Man.

Subject to Tynwald approving enabling legislation in October, it should be able to be applied in the island from the beginning of next year.

Mr Bell said: ‘The Isle of Man has led the way in building an extensive network of bilateral tax information exchange agreements around the world, so joining the multilateral convention is a logical step for us.

‘The convention makes it easier for developing countries to benefit from tax information exchange, and as a responsible international business centre it is important that we support this significant global instrument.’

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