The Isle of Man was among the first countries in the world to move to a new global standard for tax information exchange yesterday following the signing of a historic agreement by Treasury Minister Eddie Teare MHK.
Minister Teare was invited to sign the multilateral competent authority agreement by Germany’s Federal Minister of Finance Wolfgang Schäuble. The signing ceremony took place in Berlin alongside the 7th meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes.
The newly signed agreement commits its 51 signatories to automatically share information in accordance with the Common Reporting Standard developed by the OECD and endorsed by the G20 group of major economies earlier this year.
Minister Teare commented: ‘Tax evasion is a global problem and it requires a global solution. The Isle of Man has been at the forefront of support for a single global standard as the fairest and most effective way of achieving tax transparency while minimising compliance costs for business and government.
‘Today a huge step has been taken towards making that global standard a reality. This initiative has progressed much more rapidly than anybody would have predicted a few years ago, and I am proud that the Isle of Man has been able to play its part.’
The agreement implements the commitment on automatic exchange of information made by the Isle of Man in 2013, and is in line with the related FATCA agreements signed by the Island with the UK and the USA that same year.
It is expected that the Isle of Man will first provide and receive information under the new system, in September 2017.