The island has received another major boost for its international reputation after getting a top rating by the global body reviewing tax transparency around the world.
We are one of only 18 jurisdictions out of 50 reviewed so far to be rated fully ‘compliant’ by the Organisation for Economic Co-operation and Development.
In contrast, the UK, the US, Guernsey, Jersey and even Germany are rated ‘largely compliant’.
The rating is based on a peer review assessment carried out by a team of experts on behalf of the OECD’s Global Forum, which involves 120 countries including the Isle of Man.
Chief Minister Allan Bell said: ‘The rating announced by the OECD’s Global Forum puts the Isle of Man into the premier league and yet again confirms its position as one of the world’s leading international business centres.
‘The standard required to achieve a top rating is very high as can been seen by the number of jurisdictions that have not yet made the grade. This is an achievement the Isle of Man is rightly proud of. It is yet further evidence of the island’s international standing and reputation and that the island can no longer be referred to as a “tax haven”.’
Meanwhile, the Isle of Man has become part of an international network of more than 75 countries co-operating on tax matters. We are the first Crown Dependency to join the Convention on Mutual Administrative Assistance in Tax Matters, a multilateral agreement providing for tax co-operation between its signatories. The net effect will be to bring the Isle of Man 38 new tax treaty partners, mainly developing countries.
The island confirmed its commitment to joining the OECD/Council of Europe Convention ahead of the G8 Summit in June this year.
Tynwald approved enabling legislation in October, and the Manx Government then formally asked the UK Government to extend the application of the Convention to the island. This was done at a ceremony held during a meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes in Jakarta last week. It is expected to enter into force in March.
Mr Bell said: ‘The Convention adds significantly to the Isle of Man’s existing network of bilateral taxation agreements.’