The Convention, jointly developed by the OECD and the Council of Europe, offers an accessible route to increase the number of jurisdictions, including developing countries, taking part in tax information exchange networks. The Isle of Man has been interested in joining the Convention for some time, and gave its commitment to do so prior to the G8 Summit in June this year.
The Island’s progress in respect of the Convention has been reported in a letter sent this week by Treasury Minister Eddie Teare MHK to the Secretary General of the OECD Angel Gurria (copy of letter attached below).
The Manx Government will be asking the United Kingdom Government to extend the application of the Convention to the Isle of Man. Subject to Tynwald approving enabling legislation in October, the Convention should be able to be applied in the Island from the beginning of next year.
The Chief Minister commented:
‘The Isle of Man has led the way in building an extensive network of bilateral tax information exchange agreements around the world, so joining the Multilateral Convention is a logical step for us. The Convention makes it easier for developing countries to benefit from tax information exchange, and as a responsible international business centre it is important that we support this significant global instrument.’