The Paradise Papers prompted a debate in the House of Commons last week.

During it, Liberal Democrat leader Vince Cable even suggested that overseas territories and Crown Dependencies - which includes the Isle of Man - could be taken over by the UK, which would impose direct rule.

In our case that would mean removing Tynwald’s powers and being run by Westminster, a measure that the UK can take already, constitutionally.

Labour MP Dame Margaret Hodge kicked off the debate, describing tax avoidance as a ’scourge on our society’.

The issue of public records of beneficial owners - who gets the money from registered companies - was raised.

The Isle of Man and its low-tax competitors share information with other jurisdictions but those names are not made public.

The UK now has a public record.

Mr Cable backed an open register of beneficial owners, with a deadline for its introduction.

He said: ’If the overseas territories do not comply, a series of sanctions could be introducedâ??for example, initially stopping companies registered there bidding for public contracts.

’Of course, the ultimate sanction is what happened in the Turks and Caicos Islands in 2009, when there was direct rule. If overseas territories egregiously avoid taxation in a way that seriously damages the UK, that is the kind of measure that should be introduced.’

There was some support for the island during Tuesday’s debate.

Robert Neill, Conservative MP for Bromley and Chislehurst, pointed out that ’in recent years the three Crown dependencies and the overseas territory of Gibraltar have fully co-operated with the UK in relation to all tax transparency and OECD measures, and that they have the same tax transparency ratings as the United States, Germany, ourselves and other western democracies’.

Financial Secretary to the Treasury Mel Wright said that in relation to corruption inquiries ’we have automatic access to our Crown Dependencies and overseas territories’.

David Morris, Conservative MP for Morecambe and Lunesdale, said: ’I have lot of time for the Isle of Man Government and they have a lot of links to my constituency. The problem I have is that the Isle of Man is the most highly-regulated offshore tax haven, if we want to call it that, in the whole world.

’The Isle of Man Government told me: "Amongst other things, the Customs and Excise Agreement removes the need for customs barriers between the Isle of Man, the UK and the EU" â?? even the EU is loath to draft any legislation on this matter â?? "and makes the island part of the European VAT territory.

’"The agreement also makes provision for the Revenue Sharing Agreement (RSA), the agreed formula by which VAT and most other indirect tax revenues are split between the UK and the Isle of Man."

’On the subject of private jets, the Isle of Man Government told me: "Since 2011, Isle of Man Customs and Excise has raised more than 30 assessments for under-declared or over-claimed VAT against businesses in the aircraft leasing sector, protecting approximately £4.7m of VAT for the Exchequer." So what are we arguing about? Are we arguing about reforming tax laws or reforming tax havens?

’I might add that most tax havens in overseas territories have been sorted out by this House.

’I shall keep it short, Mr Speaker, but I think that this debate is a grand waste of time. More to the point, it is confusing to the public.’