The Isle of Man has been removed from annex II of the Economic and Financial Affairs Council's (ECOFIN) non-cooperative jurisdictions for tax purposes. This follows a long programme of work and proactive engagement. The Isle of Man Government welcomes this positive recognition of the Island's ongoing commitment to international standards.
In December 2017 the Isle of Man was placed in annex II by the EU Code of Conduct Group as there were concerns that the Island did not have legal substance requirements for entities doing business in or through the jurisdiction.
In response the Isle of Man proactively engaged with the Group and worked closely with fellow Crown Dependencies Jersey and Guernsey to develop proposals to address the concerns raised. This resulted in new legislation which was introduced in December 2018.
The Group has now reviewed the Isle of Man’s work over the past year and have removed the Island from annex II.
Chief Minister Howard Quayle MHK said:
'We welcome this positive endorsement of our commitment and proactive engagement with international standards. The government has engaged at every stage to ensure any concerns expressed by the Group were addressed.
'The Isle of Man is a well-regulated transparent jurisdiction that takes its international responsibilities extremely seriously.
'We have a positive role to play in today’s global economy and will continue to be a responsible and open member of the international community at the forefront of international standards and have a continued commitment to tax transparency and cooperation.'