From 2016, additional information will be exchanged between Isle of Man and the UK
THE ISLE OF MAN has become the first Crown dependency to extend its tax information-sharing deal with the UK.
The agreement sees financial information on UK taxpayers with accounts in the Isle of Man reported to HM Revenue & Customs automatically every year.
The island already exchanges information with the UK and other EU nations. 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 trust will be shared after 2016.
CIoT European representative and Kinetic Partners member Gary Ashford said: “HMRC are taking decisive action to make as much progress as possible. The signing of the inter-governmental agreement with Isle of Man agreement is an important step, being the first of such agreements not directly involving the US.
“These new agreements…show a statement of intent from the UK and Isle of Man authorities.”
Isle of Man chief minister Allan Bell said: “In signing this historic agreement with the United Kingdom we are underlining the message to our neighbours and the wider world that our Island is a responsible centre for top quality international business.
“The Isle of Man was the first to strike this agreement with the UK and we are now the first to sign, demonstrating the clear commitment of both countries to the development of a new global standard in automatic exchange.”