European Parliament members are ’bleating’ about blacklists in the wake of Brexit, says a leading island commentator on tax issues.

But Greg Jones has warned that the island cannot ignore what is happening because ’we don’t want to end up on a blacklist’.

He said in a worst case scenario it could result in the island introducing corporate taxes ’to satisfy the EU’.

And this could damage our economy and hit corporate service provider companies hard.

Mr Jones was speaking after it emerged the Isle of Man could be placed automatically on a tax haven blacklist following a vote by MEPs last week.

Seeking to send a tough message on tax avoidance, MEPs voted overwhelmingly in favour of adding more nations and territories to a growing list of non-cooperative jurisdictions.

The resolution, which was passed with a majority, included measures calling for the automatic inclusion on the blacklist of countries with 0 per cent tax regimes - including the UK’s overseas territories, which transparency campaigners consider havens for tax avoidance.

A 0% tax rate policy like the Isle of Man’s could automatically lead to it being placed on the blacklist.

Mr Jones told Business News in his opinion ’it’s a lot of bleating by the MEPs after Brexit’.

’Does it mean we introduce corporate taxes just to satisfy and placate the EU?

He believes doing this ’could put at risk the island’s corporate services providers (CSP), a vital part of the island’s economy here’.

He added: ’Anything over zero is going to be a threat to the CSP sector.

’I think their idea of a minimum rate of tax could be 10% to 12% and I think that would be damaging for business. I believe this could mean we have to reshape our economy.

’We do need to be able to offer the zero rate of corporation tax in the island otherwise it would be damaging for a lot of existing businesses here. Obviously I’m not the only person who thinks that.’

He added that the zero tax rate was ’sacrosanct’ and a ’holy grail’ for the island’s economy. Mr Jones also believes the European MEPs should consider putting their own house in order.

He said that most if not all EU countries already have very strict anti-avoidance rules making it very difficult for their own residents to avoid taxes by using for example Isle of Man companies so maybe it’s just a question of them implementing those rules properly.

Treasury Minister Alfred Cannan told the Examiner that this was an advisory vote only by MEPs but that the Manx government would be closely monitoring developments. The European Parliament does not initiate legislation. A government spokesman said the island has a long-standing position of complying with international standards of taxation.

He said: ’This resolution does not change the law and the Isle of Man is considered a co-operative jurisdiction by the EU.’