The Isle of Man government issued this press release this morning, which confirms the leak through International Tax Review two weeks ago that the UK government is seeking to impose considerable new automatic information exchange requirements on the Crown Dependencies and, I believe, the British Overseas Territories:
THE Isle of Man Government has confirmed that it will be adopting tax information sharing arrangements with the United Kingdom which will follow closely the FATCA intergovernmental agreement currently being negotiated with the United States.
Chief Minister Allan Bell MHK said: ‘The nature of tax cooperation is changing and, as I made clear in my Agenda for Change speech to Tynwald in October, automatic exchange is becoming the global standard. The Island already shares tax information automatically under the EU Savings Directive and has recently announced that it will do so on a wider basis with the USA.
‘This decision is a well-considered next step in the Island's long-established policy of commitment to being at the forefront of tax transparency and international cooperation. The Isle of Man has achieved global recognition for its proven record of compliance with current international standards of tax co-operation, with the OECD reporting to the G20 last year that the Island was one of only a few jurisdictions with all the elements of effective tax information exchange in place. At the same time the Financial Stability Board placed the Isle of Man in the highest category of co-operative jurisdictions strongly adhering to international standards of co-operation and information exchange.
‘Continuing with this approach, it is logical for the Isle of Man to embrace new forms of tax cooperation with our largest trading partner, the UK.”
This means that the Isle of Man Government will work together with the UK Government on concluding a number of measures which will enhance tax transparency as part of their shared commitment to combat tax evasion and financial crime. The two Governments will adopt new enhanced reciprocal tax information sharing arrangements, under which they will automatically exchange information on tax residents on an annual basis.
To minimise the burden on financial institutions, the approach will follow as closely as practicable the Model Intergovernmental Agreement reached between the UK and the United States of America and will be concluded to the same timetable as the agreement between the Isle of Man and the United States.
The Chief Minister went on to say: ‘As a small International Business Centre, the Isle of Man seeks to work in partnership with our key economic allies to compete for global business. It is therefore essential that we also work together to achieve international standards of regulation.
‘By clarifying our intentions, we can give business confidence about our direction of travel, so that together we can build a sustainable future for the Island's economy.
‘We will be working closely with our Isle of Man based businesses and the UK Government to ensure measured and cost-effective implementation of this agreement. I look forward to announcing further details of how we are achieving this over the coming weeks.'
There is a key phrase in here:
The nature of tax cooperation is changing and, as I made clear in my Agenda for Change speech to Tynwald in October, automatic exchange is becoming the global standard.
True.
But only because of intensive campaigning by the likes of the Tax Justice Network.
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For the record I love Starbucks. I disagree with what they’ve done on tax, but I love how they’ve listened well in the past (Fairtrade coffee). I think the announcement for them to pay £20m is a step in the right direction- though it doesn’t tackle the moral issue of the last 14 years.
I wrote a letter to Kris Engskov (the UK boss)
http://www.calebstorkey.net/2012/12/kris-engskov-my-open-letter-response-to-starbucks-uk-boss/
outlining some ideas and suggestions as to how they could use this focus to do something incredible. Team up with Amazon, Facebook and Google and donate a tangible significant amount between them to impact the poor in our society. Invest it into start up ideas and community initiatives. Outlined my proposal in my letter- and waiting for a response. Love to get more thoughts on it, and to focus the energy somewhere positive for him to consider it.
It’s interesting that Jersey and Guernsey are not running parallel with the Isle of Man on this issue. They appear to be saying that they want a level playing field for all finance centres before they adopt full automatic exchange. Could the UK impose this agreement on Jersey and Guernsey?
Yes
They are doing so
Jersey has confirmed that
Are you quite sure that Jersey has confirmed exactly that?
Jersey is panicking
But it will have to agree
Judging by the comments in the Isle of Man press, it would seem Allan Bell’s announcement is not popular with all in the island! Interesting times.
http://www.iomtoday.co.im/news/business/isle-of-man-will-adopt-tax-information-sharing-agreements-with-the-uk-1-5207270
But I would add,having just read the comments from that link,that amongst the more intelligent comments,a realistic attitude prevails – and that is island wide I`d guess.Only time will tell.on the long term effects.
Well, it’s nice to see the IOM leading the way.
It’s taken a lot of courage to go this far, and will take a whole lot more to see it through.
I think praise is fair for the IOM given the stance it is taking.
It doesn’t matter for the IOM whether Jersey / Guernsey follow suit. The money might move, the skills probably won’t.
Personally I welcome this – it proves once and for all that tax evasion is not a reason for investing in the Isle of Man. It will be interesting to see whether this will result in Richard and his friends ceasing their criticism of the Island. Are they truly only against tax havens or does their prejudice run deeper?
Give this to everyone
And put full company and trust data on public record
Then I will have problems criticising you
You have a very long way to go yet
Why don’t you tackle Delaware? It would be a much bigger prize. I’d suspect you’d be run out of town
Are you guys in Douglas so small minded you don’t realise we do just that?
Been on the radio more there than ion the IoM
Just go and read the Financial Secrecy Index
Meanhwile in Jersey we are repeating the same mantra we have over the EU automatic exchange for the last few years. Personally I think we’re stuffed on this and will have to follow the IOM route very soon. Jersey seems incapable of learning from past mistakes.
The following joint statement has been issued by the Chief Minister of Jersey, Senator Ian Gorst, and the Chief Minister of Guernsey, Deputy Peter Harwood, on developments relating to the Foreign Account Tax Compliance Act (FATCA) and the UK Government:
“As communicated last week, officials from Guernsey, Jersey and the Isle of Man continue to engage with US officials, aimed at concluding Intergovernmental Agreements under the US FATCA regulations.
“We also share a common commitment with the UK to combat tax evasion and to participate in international efforts to combat financial and fiscal crime. We have long made it clear that neither Island has any wish to accommodate those engaged in tax evasion.”
Senator Gorst added “The UK Government is seeking to promote more widely as a new international standard the principles of the US Foreign Account Tax Compliance Act (FATCA). Jersey considers that it is important that in doing so the UK Government mirrors the approach of the US FATCA in being global in its application, ensuring a non-discriminatory approach for all jurisdictions.
“In our ongoing discussions with the UK Government we will be pressing them to make clear the steps they are taking to promote the adoption of automatic exchange of information worldwide to ensure that a level playing field is achieved for all finance centres competing in the global market place.”
“Tax Information Sharing with UK (2)
It might go down as one of the most historic announcement in 30 years as the future of ‘offshore’ business dealing with UK takes a new direction. Chief Minister answers questions from the press”
Link to video of Allan Bell’s press conference here:
http://www.manx.net/tv/mt-tv/watch/51479/tax-information-sharing-with-uk-2-
Part 1 of the Allan Bell’s press conference, where he announces the Isle of Man will be adopting new tax sharing arrangements with the UK, is here:
http://www.manx.net/tv/mt-tv/watch/51475/tax-information-sharing-with-uk-1-
http://www.iomtoday.co.im/news/isle-of-man-news/chief-minister-s-statement-about-uk-fatca-1-5214933
Chief Minister’s statement as reproduced in Manx media.