Dr Malcolm Couch, Assessor of Income Tax, has said that there will be a "world focus" on international tax issues in the near future.
Speaking on 'The Evolution of Global Tax Standards' at a conference on the Future of Onshore and Offshore Financial Centres in London, Dr Couch explained that there will be an increased focus on the development and implementation of tax standards in the next five years, and warned that the development of effective standards would depend on increased international dialogue and the building of consensus.
Dr Couch was presenting at the event yesterday (Wednesday 2nd December) alongside keynote addresses including Jeffrey Owens, Director of the Centre for Tax Policy and Administration at the OECD, and Michael Foot, Chairman of Promontory Financial Group (UK Office), who recently completed a review of the UK Overseas Territories and Crown Dependencies for the UK Treasury.
In his remarks, Dr Couch said, "This year, we have seen increased attention on how countries around the world implement tax standards and co-operate with each other, and this was particularly highlighted by the focus of the G20 and the OECD on the issue.
"We have also seen the evolution of the Global Forum on Transparency and Exchange of Information into a formally established body mandated to review international tax standards; and are now likely to see a proliferation of additional organisations scrutinising standards.
"However if we do see this, it is essential that these standards be universally accepted.
"In the face of this, it is essential for continued economic development and sustainability that financial centres adhere to and adopt the highest of international standards whether laid out by G20, OECD, FATF or a new organisation.
"As a leading international business centre, the Isle of Man will continue our programme of negotiating tax co-operation agreements and engaging on this issue with countries around the world.
"Already this year, we have signed three double taxation agreements, four tax information agreements and a number of additional agreements."
With an evolving and strengthened focus on tax transparency and information exchange, international financial centres are also likely to face an increasing number of external reviews.
Couch added, "The increased attention on international financial centres won't just focus on tax, but will also look at areas such as regulation, political and economic stability and consumer protection.
"Recently, the Island welcomed the findings of the Foot Review, which made a positive assessment of the Island's move to automatic exchange of information under the EUSD, its 'substantial implementation' of international standards on information exchange and for its Financial Services Ombudsman complaints scheme.
"The Isle of Man has continuously set out to build relationships with other countries based on the highest standards of transparency and co-operation, which we feel are vital for us to grow and strengthen as an international business centre."
