On 7 October 2014 the Republic of Colombia’s Ministry of Finance and Public Credit published Decree 1966/2014, the effect of which is to remove the Isle of Man from Colombia’s blacklist.
This move recognises that the Isle of Man and Colombia have both joined the OECD Convention on Mutual Administrative Assistance in Tax Matters (the “Convention”) which provides for information to be exchanged for tax purposes in accordance with international standards.
The Convention entered into force in the Isle of Man on 1 March 2014 and in Colombia on 1 July 2014. Currently 84 jurisdictions have committed to cooperation under the Convention.
41 jurisdictions remain on Colombia’s blacklist. Inclusion on the list means, for example, that higher rates of tax apply on certain transactions.
The Treasury Minister welcomed the removal of the Isle of Man from Colombia’s blacklist, commenting:
‘The Isle of Man welcomes the Republic of Colombia’s recognition of the Island’s longstanding commitment to transparency and exchange of information for tax purposes; and as partners under the Convention the Isle of Man looks forward to working with Colombia to tackle tax evasion and avoidance through the exchange of tax information.’
