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Tax co-operation agreements with Australia come into force - Income Tax Press Release

On 29 January 2009, the Isle of Man concluded two tax co-operation agreements with Australia:

- a tax information exchange agreement based on the Organisation for Economic Co-operation and Development (OECD) model; and

- an agreement for the allocation of taxing rights over certain income of individuals and to establish a mutual agreement procedure in respect of transfer pricing adjustments.

The Isle of Man ratified the agreements on 17 March 2009, and the Chief Minister, Tony Brown MHK, informed the government of Australia that ratification had taken place.

The Australian High Commission in London has now confirmed that Australia has completed its own ratification procedures, and as a consequence the agreements entered into force on 5 January 2010.

The negotiation, signing and ratification of tax co-operation agreements demonstrates the Isle of Man’s commitment to international standards and the global effort to establish a system based on co-operation between countries, transparency and effective exchange of information in tax matters; all of which strengthen financial stability. On 2 April 2009, the OECD acknowledged the Isle of Man’s quality in regulation and co-operation by placing it on what many have referred to as the ‘white list’ of countries which have substantially implemented the internationally agreed tax standard.

The full text of the news release issued today can be viewed here and the texts of the agreements are available here.