The island has joined some 70 other countries signing up to a new international treaty against tax avoidance by multinational companies.

Treasury Minister Alfred Cannan MHK was in Paris to sign the OECD convention to prevent Base Erosion and Profit Shifting (BEPS).

The OECD says the ground-breaking convention will close loopholes in thousands of tax treaties worldwide.

Mr Cannan said: ’As a responsible and reputable jurisdiction the Isle of Man has a clear policy of complying with international standards. We are pleased to support this latest move to update international tax rules and it has been an honour to represent the island at the signing ceremony in Paris.’

The convention enables new measures to be incorporated into thousands of tax treaties worldwide, without the need for countries to undertake multiple bilateral negotiations. BEPS refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits between jurisdictions to minimise tax liability.

’The signing of this multilateral convention marks a turning point in tax treaty history,’ said OECD Secretary-General Angel Gurría.

The convention enables new measures to be incorporated into thousands of tax treaties worldwide, without the need for countries to undertake multiple bilateral negotiations. BEPS refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits between jurisdictions to minimise tax liability.