Governments

THE Isle of Man has become ‘collateral damage’ in a wider debate going on in UK politics, Chief Minister Allan Bell told MHKs – adding that he was determined to enhance the island’s relationship with Westminster. ...

The Chief Minister says he supports the UK's drive to stamp out tax evasion. .

"LABOUR leader Ed Miliband is demanding the UK government forces the Isle of Man, Jersey and Guernsey to reveal the identity of British tax evaders with money ‘hidden’ in the islands, it’s being reported today (Sunday).

Miliband, under fire over a lack of strength in his leadership of the opposition party, is said to be preparing to call this week for negotiations to begin and will demand ministers follow up the talks with a threat to put the islands on the Organisation for Economic Co-operation and Development blacklist.

He claims the move could raise £2.4 billion for the UK exchequer."

See also BBC report and video here: http://www.bbc.co.uk/news/world-europe-isle-of-man-16578469

"The Isle of Man News has a fascinating article asking whether the pressure has been taken off the Isle of Man now on tax matters.

Much of the analysis is wrong because they think the issues are now resolved, and that is far from true ... "

COULD the international pressure on the island be easing at last?

Over the past five years, our financial services, tax rates and Customs deal have come under intense scrutiny from beyond our shores.

We’ve had the EU question our corporate tax regime, the painful revision of our VAT deal twice in two years, an inquiry commissioned by the Westminster government has run the rule over our ability to withstand financial shocks and the OECD has reviewed our tax transparency and co-operation.

It seems that barely a week went by without another brickbat being lobbed our way by Brussels, London or Washington.

But now as 2011 comes to a close, there is a tangible feeling that international relations have turned a corner – and the pressure on us, at least for the time being, has abated.
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"The Isle of Man has been on Spain's blacklist of high-risk jurisdictions since 1991, though according to Manx politicians this has more to do with politics than the Isle of Man's credibility as an international finance centre.
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It is hoped that the signing of the TIEA (Tax Information Exchange Agreement), currently awaiting approval from the foreign ministry in Spain, will reboot relations between the two jurisdictions and facilitate business flows between the Isle of Man and Spain.
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What frustrates Manx politicians most about the blacklisting is that the Isle of Man has been recognised by the G20 as a front-runner in the crusade to stamp out tax evasion.
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See also comments - recommendations welcome!

See also here: http://www.isleofman.com/News/article.aspx?article=41826

and here: http://www.iomtoday.co.im/news/isle-of-man-news/isle_of_man_caught_in_sp...

Martin Wolf's Exchange:
"Iceland was the first country devastated by the financial crisis. ...
On October 27 2011, I attended a conference jointly organised by the IMF and the government of Iceland to celebrate Iceland’s graduation from the programme and evaluate the outcome of the rescue. ... "

The Isle of Man is at the forefront of the crusade to stamp out tax evasion, a tax transparency report has concluded

Delivered to the G20 in Cannes, the report detailed how the Isle of Man was one of eight jurisdictions to meet all of the standards required for "effective information exchange" on suspected tax cheats.

The Isle of Man's willingness to follow best practice on information exchange was instantly derided, however, by critics who believe the information exchange procedure employed is ineffective.

Much better, they argue, would be an automatic exchange of information where tax authorities could access information more freely and without having to jump through hoops that they say make the current system obstructive and ultimately futile.

Tax expert Richard Murphy said: "There’s no doubt the Isle of Man did well in this test on ability to information exchange. But it is a bit like the student who got A* in the GCSE in making love but has yet to have a partner. Geting a good mark in theory and actually getting on with the reality are sometimes two very different things."
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The Isle of Man is launching an international push to persuade more British expats and international companies to domicile their pensions on the island.

The island’s financial promotional body, the Isle of Man Finance Partnership, has joined forces with the Isle of Man Association of Pension Scheme Providers (APSP) in this initiative.

The main target of the campaign will be financial advisers and its buzz phrase will be “international retirement solutions”. ...

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Ramsey MHK, Allan Bell may have won a landslide victory over Liberal Vannin Party (LVP) leader, Peter Karran, to become the Isle of Man’s chief minister, but some will be hoping the landslide doesn’t end up burying the Island beneath a blanket of corporate greed and disdain for the Island’s heritage and environment. ...
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