Offshore centres to face increasing tax scrutiny

A senior figure from the Isle of Man is predicting offshore centres will be increasingly under the microscope in the next five years after a global offensive on tax avoidance in 2009.

Speaking on “The Evolution of Global Tax Standards” at a conference on the Future of Onshore and Offshore Financial Centres, Malcolm Couch, assessor of income tax in the Isle of Man, warned there would be increased attention on the development and implementation of tax standards over the next five years.

"This year we have seen increased attention on how countries around the world implement tax standards and co-operate with each other, and this was particularly highlighted by the focus of the G20 and the OECD on the issue," said Dr Couch.

"We have also seen the evolution of the Global Forum on Transparency and Exchange of Information into a formally established body mandated to review international tax standards; and are now likely to see a proliferation of additional organisations scrutinising standards."

He added that the development of effective standards would hinge on further co-operation from offshore centres.

"As a leading international business centre the Isle of Man will continue our programme of negotiating tax co-operation agreements and engaging on this issue with countries around the world, added Dr Couch.

"Already this year we have signed three double taxation agreements, four tax information agreements and a number of additional agreements."