The Isle of Man took a significant step yesterday (March 2nd) in its developement of economic co-operation with other countries by finalising tax agreements with Germany.
Present at the signing in Berlin were Treasury Minister Allan Bell MHK, Nicolette Kressl, Germany's Deputy Minister of Finance and Georg Witschel, Director in Foreign Affairs.
The two agreements relate to tax information exchange, and the avoidance of double taxation with respect to enterprises operating ships in international traffic.
The Island has now signed tax co-operation agreements with thirteen countries, eleven of which are members of the Organisation for Economic Co-operation and Development (OECD). Such agreements have been instrumental in placing the Island at the forefront of international finance centres which have implemented the highest regulatory standards.
In a brief address in Berlin, Mr Bell said, "The Isle of Man has been committed to the OECD standards of transparency and effective exchange of information for tax purposes for over eight years, and we have worked hard to show clear evidence of those standards in action. I am delighted that we have signed agreements today with a leading member of the OECD, and I look forward to working with Germany in the future".
He went on, "The Isle of Man has regulatory systems for all financial services that meet international benchmark standards. Germany, and all of the other countries with which we have co-operation agreements, can rely on the Isle of Man to support them and to deliver all that is required from a small but significant player in the global economic community".
Malcolm Couch, Isle of Man Government's Assessor of Income Tax, has commented "This year will see enormous attention being focused on so-called 'tax havens' or what many now call 'secrecy jurisdictions'. Our Government considers that we are neither, but in current circumstances, words need to be backed up with actions. The Island's position is strengthened by these agreements: firstly, by showing standards in action; and, secondly, by strengthening and improving our relations
with a key player in Europe and the OECD".
The Isle of Man's first tax information exchange agreement, with the USA, was signed in October 2002. Three years later, a bilateral tax agreement with the Netherlands was the first of its kind between an international finance centre and an OECD member country.
Pictured: Allan Bell MHK with Nicolette Kressl, Germany's Deputy Minister of Finance.
