The Manx Treasury is seeking clarification of the source of a mystery statement from the United Kingdom Treasury, quoted by online media organisations in Guernsey, which claims the Isle of Man will be required to drop an aspect of its Zero-Ten corporate tax regime.

The statement was apparently issued after Tuesday's meeting of European finance ministers, or ECOFIN, who got together to discuss new Manx tax legislation, known as the attribution regime for individuals, in the context of the Island's voluntary commitment to the EU's Code of Conduct for Business Taxation.

According to the alleged UK Treasury statement, a report, duly noted by ECOFIN, concluded the new Manx tax legislation gave rise to harmful effects, and the UK Treasury now expected the Isle of Man to abolish what are termed 'the harmful measures'.

However, Treasury Minister Anne Craine says the purported UK Treasury statement is 'highly misleading' and 'doesn't accurately reflect the outcome of the ECOFIN meeting'.

Mrs Craine says she has not yet received any notification or briefing on the outcome ECOFIN's deliberations, but understands that in relation to the Isle of Man nothing was decided. She says no formal assessment of the Island’s new tax legislation has been undertaken by the Code of Conduct working group, which is examining Zero-Ten, and ECOFIN merely noted the group's report.

It's been confirmed ECOFIN has set up a High Level Working Party to address the scope of the Code of Conduct for Business Taxation, which will report back by June next year. The Manx Treasury understands the Code of Conduct working group will return to its consideration of the Isle of Man’s new tax legislation after the High Level Working Party has carried out its review for ECOFIN. Mrs Craine concludes there is nothing further the Isle of Manx Government should do, until the High Level Working Party has completed its work.