The UK and Isle of Man’s tax evasion co-operation package will allow action on those who try to hide their money offshore. This forms an integral part of the Government’s offshore anti-evasion strategy which will be published later this year.
The package comprises of an automatic tax information exchange agreement and the setting up of a disclosure facility. The disclosure facility will allow investors with accounts in the Isle of Man to come forward and settle their past affairs before information on their accounts is automatically shared.
Under the automatic exchange agreement, a wide range of financial information on UK taxpayers with accounts in the Isle of Man will be reported to HM Revenue & Customs automatically each year.
Commenting on the move, chancellor of the Exchequer, George Osborne said: "The Government is committed to tackling tax evasion and this agreement will greatly enhance HMRC’s ability to clamp down on those who try to hide their money offshore. I welcome the progress made with the Isle of Man and look forward to working on this new standard in the automatic exchange of tax information. Today’s agreement builds on the groundbreaking work we have already carried out – the UK Government has signed agreements with the US and Switzerland so far and we are in discussions with Jersey and Guernsey as part of our common commitment to combat tax evasion."