The Isle of Man Government is today (1 May 2013) giving an update on a number of taxation and regulatory matters in the light of international developments which are progressing ahead of the forthcoming G8 Summit. The UK Prime Minister David Cameron will be hosting this year’s meeting of world leaders on 17 and 18 June.
Among the topics expected to be on the Summit agenda is the initiative announced by the United Kingdom, France, Germany, Italy and Spain on 9 April 2013 for developing and piloting a form of multilateral tax information exchange based on the model FATCA intergovernmental agreement which they developed with the USA. Further European Union member countries have said that they will join the pilot.
The Isle of Man Government welcomes this move and intends to engage with the pilot and in supporting the development of a new global standard on automatic information exchange. Having a single global standard will lead to greater tax transparency while minimising compliance costs for business and Government.
The Isle Man also welcomes the communique issued by the finance ministers of the G20 on 19 April 2013, in particular the statement that: “We look forward to the OECD working with G20 countries to report back on the progress in developing of a new multilateral standard on automatic exchange of information, taking into account country-specific characteristics.”
As many more countries than those in the OECD and G20 apply international tax standards, it is important that countries from outside those organisations are invited to take part in this vital work; and the Isle of Man stands willing to participate in the technical work of developing the new standard.
The 19 April G20 communique also said: “We reiterate our support for FATF work, notably the identification and monitoring of high-risk jurisdictions with strategic AML/CFT deficiencies. We must tackle the risks raised by opacity of legal persons and legal arrangements, and encourage all countries to take measures to ensure they meet the FATF standards regarding the identification of the beneficial owners of legal persons, other corporate vehicles and trusts, that is also relevant for tax purposes.”
The Isle of Man is committed to complying with FATF standards on AML/CFT. Establishing the ultimate beneficial ownership behind all account and business relationships conducted by financial intermediaries in the Isle of Man is a mandatory legal requirement backed by onsite regulatory supervision in order to ensure compliance. The Isle of Man is committed to remain at the forefront of jurisdictions in this regard.
Chief Minister Allan Bell MHK said today: “The Isle of Man takes a leading role in the fight against tax evasion and illicit finance, both in terms of legislation and enforcement. Economic success is driven by the linked factors of having the best international standards in place and understanding the needs of business. My Government welcomes the impact that rapidly evolving international standards are having in raising standards globally, but also knows that business must not be forgotten.”
Mr Bell added: “There must be a concerted commitment by governments that the foundation of automatic exchange of tax information, whether between two partner countries or multilaterally, has to be a common international compliance system for business. It is right that the private sector takes on new obligations in the fight against tax evasion and money laundering, but it is also right that the impact of those obligations should be kept to the minimum.”
