Isle of Man on OECD ‘White List'
On 2nd April 2009, at the meeting of the G20 world leaders in London, it was announced that in its aim to strengthen financial supervision and regulation, action would be taken against non-cooperative jurisdictions, including tax havens. Later in the day, the Organisation for Economic Co-operation & Development (OECD) published an updated list of countries which its Global Forum has assessed against the international standard for exchange of tax information. The list was divided into 3 distinct sections:
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The ‘white list' - jurisdictions that have substantially implemented the internationally agreed tax standard
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The ‘grey list' - jurisdictions that have committed to the internationally agreed tax standard, but have not yet substantially implemented
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The ‘black list' - jurisdictions that have not committed to the internationally agreed tax standard
The Isle of Man is one of only 7 ‘offshore centres' to be named on the ‘white list' of 40 countries. Other countries appearing alongside the Isle of Man on the ‘white list' include the UK, United States, Germany and France. It should be noted that the Isle of Man has signed Tax Information Exchange Agreements (TIEAs) with each of these major global players and to date has signed up to a total of 14 TIEAs, 12 of which are with other OECD member countries.
TIEAs are now widely recognised as representing good business practice for those countries entering into such agreements with each other. A TIEA is only put into operation in very specific circumstances and providing certain conditions are met. A request for information must be made on an individual case basis and the subject of the request must be under investigation in the requesting jurisdiction. The requesting authority must first pursue all means available in its own country to obtain the information. All information that is exchanged may not be passed on to third parties and there are strict confidentiality measures.
It is important that the Isle of Man has been formally acknowledged as not operating as a tax haven and has now received recognition for the work it has performed in addressing this misconception. Of particular note in this regard is the ‘grey list' and the continued reference to 30 tax havens who have yet to substantially implement the internationally agreed tax standard.
This positive endorsement of the Isle of Man by the OECD puts the Island at a major advantage when competing for business in the global arena. It is proof that the Isle of Man is a highly regulated and transparent financial centre which is able to boast a commitment to internationally agreed tax standards. Its inclusion on the ‘white list' will enable Equiom to continue to grow in the knowledge it is operating within a flexible yet robust infrastructure.
On publication of the OECD lists Isle of Man Treasury Minister, Allan Bell, said:
'The OECD lists are a significant step forward in the debate about tax, as countries are now being judged and separated on the basis of agreed international criteria - not just size. The Isle of Man has always supported an objective, global approach to this issue and the G20 summit has confirmed this as the way forward.
‘Inclusion on the white list represents a major endorsement of the Isle of Man and of our long-term strategy of positive engagement with the OECD. This can only reinforce the Island's reputation and confidence in our future as an international business centre of quality.
‘The Island has long been committed to the international standards of tax transparency developed by the OECD in 2000. We are at the forefront of small nations in delivering on that commitment.
‘Over the past seven years we have signed more tax information exchange agreements than any of our counterparts, including agreements with the UK, France and Germany. We have concluded a total of 14 so far, 12 with OECD countries, and there are several more in the pipeline. The signing of our twelfth agreement with OECD countries was described by the OECD itself as a significant milestone.
‘The Island also has a strong track record of complying with international standards of financial regulation, as assessed by the IMF and others. A series of independent, external reviews over the past decade have enhanced our reputation as a well regulated centre for international finance.'
OECD LISTINGS UPDATE (14th August 2009)
Download a copy of the updated 'White, Grey and Black List' here>>> (29kb PDF)
OECD LISTINGS UPDATE (8 June 2009)
Download a copy of the updated 'White, Grey and Black Lists' here>>> (30kb PDF)
OECD LISTINGS (2nd April 2009)
Download a copy of the OECD list of 'White, Grey and Black Lists' here>>> (27kb PDF)
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Isle of Man 'AAA' Rating
