David Cameron's irresponsible statement on Monday that none of the UK's Crown Dependencies or Overseas Territories can now be considered tax havens is already having serious repercussions. It was headline news in the Isle of Man yesterday that:
Cameron accepts that the Isle of Man is ‘not a tax haven'
The story went on:
The prime minister's views have been welcomed as a further endorsement of the Isle of Man's commitment to remaining at the forefront of global standards.
His comments are in stark contrast to those made by his predecessor, Gordon Brown, and his Chancellor of the Exchequer, Alistair Darling, who dismissed the island as a ‘tax haven in the Irish Sea' at the height of the Kaupthing affair in 2008.
I'm afraid Brown was far, far closer to the truth. But as the IoM Today site reports:
Treasury Minister Eddie Teare today said: ‘Mr Cameron's remarks provide clear recognition of the Isle of Man's constructive engagement with the international tax agenda.
‘With positive assessments by such organisations as the OECD, IMF and Financial Stability Board, we do not consider ourselves to be a tax haven.
‘The prime minister has now reinforced that message in very strong terms. It supports our view that the Isle of Man is a responsible business centre with a competitive, clear and simple tax regime.
‘The Isle of Man has led the way in respect of tax cooperation and transparency for the past 15 years and was the first nation to commit to a FATCA-style agreement with the UK to automatically share tax information. We have also produced an action plan to set out our position on tax information exchange and the identification of corporate beneficial ownership, and recently confirmed our intention to join the Multilateral Convention on Mutual Assistance in Tax Matters.'
And thereon lies the rub.
The Isle of Man is going to do FATCA with the UK and USA - but who else? Offering automatic information exchange to two states does not stop a place from being a tax haven for 200 or more other jurisdictions in the world.
And this has not, anyway, as yet happened. The devil as we all know on these things is in the detail, and we're a long way from that yet.
Just as there is no sign of what the so-called action plans will deliver as yet, and nor has the OECD convention actually been signed - let alone been complied with.
Cameron's claim was about as absurd as a new business person declaring themselves a millionaire because they've bought an off the shelf company to run their new venture - without as yet having even got a single order. Yes of course that person has aspiration to success and yes, of course there is hope that the Isle of Man will cease to be a tax haven one day: I set out the conditions for that yesterday. But to say that because it has made some very vague declarations of intent which so far have no substance and little international reach, and has yet to reform any of its secrecy practices such as the supply of anonymous shell companies, that it is not a tax haven is just absurd.
Except it's worse than that: Cameron's comments will take the pressure off these places to actually do anything now. And that suggests that the whole of the G8 process was a fiasco at best. And that's profoundly disappointing for all the people who suffer as a result from tax haven abuse around the worldwide including the billions who are in poverty in developing countries because the tax revenues that should be used to provide them with healthcare, education and nutrition are stripped out to places like the Isle of Man.
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We’re wooping for joy here, Mr Murphy.
PM: Island is not a tax haven – http://www.manxradio.com/newsread.aspx?id=66957
Treasury Minister pleased over Cameron’s tax haven comments – http://www.manxradio.com/newsread.aspx?id=66958
Now can we have all that extra VAT money back you took off us.
Oh dear, what silly billy’s you are
So did Cameron specifically mention the Isle of Man? – perhaps he meant it is less culpable than the others Crown Dependencies etc. ,or even including the UK itself.
He did not specifically mention the IoM
He referred to all Crown Dependencies and Overseas Territories
This is great news.
However I fail to understand why the little Island of Man needs to talk to anyone yet alone 200 countries. Man of which will have no intention of wanting to talk to them.
But I suppose we are to feel sorry for the someone, not sure who but who really cares. The IOM was a financial haven before we were all born, and will remain so, even after we are all dead.
Not if I have anything to do with it
And as has already been noted here today, I have some form there
Well, I am delighted to see you write a note here Mr M. How things change is such short spaces of time…. Now you’re at odds with the UK Government, whose statements will no longer support your own. The unsubstantiated rumours and attacking (rather unfairly at times) which you used to shout from the highest levels are now likely to diminish to nothing more than quiet whispers on a lonely old blog……
ciao……
So be it
But I really rather doubt it
Read the JEP this week?
Yes I read it most days (not picked up today’s yet). What are you referring to?
A typical Jersey response from another Jersey person with his head in the sand.
Instead of sensible argument and substantive comments, just an attempt to demoralise you.
I love my island, but this attitude he displayed and the fact we are a tax haven makes me ashamed of it.
I wonder if David Cameron’s comments on Jersey had anything to do with his dads connections to the island? Hmmmm…
Of course the Bullingdon sock puppet’s comments wouldn’t be due to lobbying by leeches in the “City” and their captive Banana Republics, sorry tax havens..
The help the Worlds poor needs to full on the shoulders of the main global governments. In this case the EU in Brussels. Not Mr Cameron or anyone else in the UK.