Isle of Man & UK Agree on Automatic Sharing of Tax InformationPublished October 18, 2013 by OCR Editor
Isle of Man and UK sign agreement to allow automatic sharing of tax information between the two entities.
Chief Minister of the Isle of Man Allan Bell MHK and UK Treasury Exchequer Secretary David Gauke MP signed an intergovernmental agreement with Isle of Man to extend the automatic disclosure of tax information. The agreement is based on the requirements of the Foreign Account Tax Compliance Act (FATCA which was introduced by the United States to ensure the tax compliance of its citizens with international interests.
The agreement will go into effect in 2016, when the two governments will begin exchanging additional information.
The Isle of Man is a British dependency, officially ruled by the Queen of England. The Isle of Man currently shares information with the UK and other EU countries on personal savings income. The Isle of Man was the first non-EU country to publicly commit to the sharing of this information under the EU Savings Directive, back in June 2009. In December 2012, the Isle of Man was also the first to commit to the FATCA-esque agreement with the UK, which extended the scope of automatic disclosure to include companies and trusts.
Chief Minister Bell commented on the agreement, "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."
Mr. Bell added that the agreement showed the "clear commitment of both countries to the development of a new global standard in automatic exchange."