Code of Conduct for Business Taxation and Fair Taxation from 2002
On 1 December 1997, the Council of the European Union adopted a resolution on a code of conduct for business taxation (the Code Group Criteria) with the objective to curb harmful tax competition. In 1998 the Code of Conduct Group (Business Taxation) was set up to assess tax measures and regimes that may fall within the scope of the Code of Conduct.
The Isle of Man committed to comply with the Code Group Criteria in 2002. The Isle of Man amended its laws and practices and eliminated any potential harmful measures in accordance with the Rollback procedure by 31 December 2005. It has subsequently complied with and continues to comply with the Standstill requirements. The Isle of Man has submitted all potentially relevant changes to its business tax system for review and rolled back any that were considered to be potentially harmful. Therefore, the Isle of Man has no preferential tax measures that could be regarded as harmful according to the Code Group Criteria.