Isle of Man given top tax compliance rating by OECD

THE OECD has rated the Isle of Man its top tax compliance rating after steps taken to increase its information disclosures to other OECD nations.

The principality is among Crown dependencies that have struck a deal the UK that sees financial information on British taxpayers with accounts on the island will be reported to HM Revenue & Customs automatically every year.

On the current timetable, UK residents with assets concealed on the island will have until September 2016 to disclose details to the taxman and pay any tax owed to the HMRC, as well as a fine between 10% and 20%. While in most cases, the deal will see evaders escape prosecution, HMRC offers no guarantees.

Additional information including data relating to companies and trusts will be shared after 2016.

The rating is based on a peer review assessment carried out by a team of experts on behalf of the OECD’s Global Forum, which involves 120 countries including the Isle of Man. Of the 50 countries reviewed to date, the island is one of 18 to be awarded the top rating.

The rating has been welcomed by chief minister Allan Bell MHK, who commented: “The rating announced today by the OECD’s Global Forum puts the Isle of Man into the premier league and yet again confirms its position as one of the world’s leading international business centres.

“The standard required to achieve a top rating is very high as can been seen by the number of jurisdictions that have not yet made the grade. This is an achievement the Isle of Man is rightly proud of. It is yet further evidence of the Island’s international standing and reputation and that the Island can no longer be referred to as a ‘tax haven’.”