Isle of Man Chief Minister Allan Bell announced that it has signed a deal with the UK government, according to the terms of which the two partners would share tax information with each other.
The agreement requires the partners to arrange an automatic exchange of information pertaining to tax residents. The US is planning to sign similar deals with gambling jurisdictions such as Guernsey and Jersey.
According to Bell’s press statement, “the nature of tax cooperation is changing and automatic exchange is becoming the global standards. The Island already shares tax information automatically under the EU Savings Directive and has recently announced that it will do so on a wider basis with the USA.”
Bell also said that the Isle of Man decided to make this move because it wants to comply with its policy to remain committed to international cooperation and tax transparency. He said, “The Isle of Man has achieved global recognition for its proven record of compliance with current international standards of tax cooperation, with the OECD reporting to the G20 last year that the Island was one of only a few jurisdictions with all the elements of effective tax information exchange in place.”
He also said that the Isle of Man has been placed in the top category of gambling jurisdictions that strictly adhere to international standards of information exchange and co-operation by the Financial Stability Board. He said, “Continuing with this approach, it is logical for the Isle of Man to embrace new forms of tax cooperation with our largest trading partner, the UK.”
Stating that it is “too early” to know the implications of the newly signed tax information sharing deal, he admitted that it could lead to a loss of job opportunities, which has to be accepted.
Explaining the Isle of Man’s stand, he said, “We have to send out a strong message to the outside world that we are no longer willing to consider that sort of business. We want to show the outside world that we are a genuine partner and we recognize where the debate is going and we want to be in the forefront of that debate.”
The fact that the Isle of Man is committed to the new deal illustrates the jurisdictions commitment to be among the world’s most reputed gaming jurisdictions. The Gambling Supervision Commission of the Isle of Man has approved top gaming companies such as Microgaming, Boyle Sports, and others.