The Isle of Man Government’s Agreements for the Exchange of Information Relating to Tax Matters with the Governments of the British Virgin Islands, the Cayman Islands and Romania have entered into force.
The agreements with the British Virgin Islands and the Cayman Islands provide for all forms of exchange of information, including the automatic exchange of information under the OECD’s Common Reporting Standard. The agreement with Romania provides for exchange of information on request. All of the agreements are based on the OECD Model.
The Treasury Minister, Hon. Eddie Teare said
'The Isle of Man is continuing to conclude agreements with all of its relevant partners to support exchange of information based on the International Standard. The agreement with Romania provides for exchange of information on request and enhances our existing relationship with Romania under the Savings Tax Directive and the OECD Convention on Mutual Administrative Assistance in Tax Matters. The agreements with the BVI and Cayman Islands provide for all forms of exchange of information and in particular will support automatic tax information exchange under the new Common Reporting Standard.'
Mr Teare added
'Automatic exchange of information is increasing with implementation of the CRS and from 2017 the Assessor will automatically receive information from jurisdictions such as BVI and Cayman Islands. In anticipation of this, in June this year, I warned that time is running out for Isle of Man taxpayers who have failed to declare income totalling more than £4 million and advised
‘anyone who has omitted or understated their income and wants to regularise their income tax affairs before 6 October 2016 should contact the Income Tax Division as soon as possible’. That period is about to close, after which the Assessor will begin to charge penalties that could have been reduced to zero if a voluntary disclosure was made on time. I would remind Isle of Man taxpayers who want to use this opportunity to regularise their income tax affairs to contact the Income Tax Division before 6 October 2016'
Details of the current practice can be found in Guidance Note GN 34 “Incorrect Tax Returns”, and transitional arrangements to the penalty regime after 6 October can be found in Practice Note 194/16, both of which are available on the Income Tax Division’s website at:
The text of the agreements can be viewed on the International Agreements page of the Isle of Man Treasury Income Tax Division’s website at:
