Isle of Man recognised on OECD tax ‘white list’

THE Isle of Man Government has welcomed the Island’s inclusion on the OECD ‘white list’ of countries complying with the global standard for tax co-operation and exchange of information.

The list, produced following the G20 summit in London, places the Isle of Man in the top tier of jurisdictions – along with nations such as the UK, USA, Germany, France, Sweden and Ireland – that have ‘substantially implemented the internationally agreed tax standard.’

The OECD has also drawn up a ‘grey list’ of ‘tax havens’ and ‘other financial centres’ that have committed to the standard but not yet substantially implemented, and a ‘blacklist’ of four jurisdictions that have made no commitment.

Chief Minister Tony Brown MHK said:

‘The OECD white list provides recognition at the highest level of the Isle of Man’s place in the mainstream of economies that comply with the global standard on tax. This is a defining moment for us, confirming our position amongst the most responsible and co-operative countries of the world.’

Treasury Minister Allan Bell MHK said:

‘The OECD lists are a significant step forward in the debate about tax, as countries are now being judged and separated on the basis of agreed international criteria – not just size. The Isle of Man has always supported an objective, global approach to this issue and the G20 summit has confirmed this as the way forward.

‘Inclusion on the white list represents a major endorsement of the Isle of Man and of our long-term strategy of positive engagement with the OECD. This can only reinforce the Island’s reputation and confidence in our future as an international business centre of quality.

‘The Island has long been committed to the international standards of tax transparency developed by the OECD in 2000. We are at the forefront of small nations in delivering on that commitment.

‘Over the past seven years we have signed more tax information exchange agreements than any of our counterparts, including agreements with the UK, France and Germany. We have concluded a total of 14 so far, 12 with OECD countries, and there are several more in the pipeline. The signing of our twelfth agreement with OECD countries was described by the OECD itself as a significant milestone.

Mr Bell added:

‘The Island also has a strong track record of complying with international standards of financial regulation, as assessed by the IMF and others. A series of independent, external reviews over the past decade have enhanced our reputation as a well regulated centre for international finance.’

The Chief Minister, meanwhile, stressed that the Island would continue to work with the OECD and other bodies promoting international standards on tax and financial regulation.

‘The Isle of Man has a long-term policy of positive engagement with international initiatives and of supporting international standards’,

declared Mr Brown

‘At a time of global economic crisis this responsible, co-operative approach is particularly relevant and vitally important.’

The Chief Minister concluded:

‘The G20 summit is clearly more of a beginning than an end. As work continues towards solutions to the global economic crisis, the Isle of Man is ready to play a constructive part.’

The OECD lists can be found at: http://www.oecd.org/dataoecd/38/14/42497950.pdf