UK government welcomes Isle of Man tax transparency vow

Date: 25th June 2009

The UK government has welcomed the announcement by the Isle of Man to make their tax regulations more transparent.

The announcement came yesterday (June 24th) with a declaration that the island would implement the automatic exchange of information on savings interest with the UK and other EU countries.

Extra transparency in this case will involve the termination of the Isle's financial institutions' use of the transitional arrangements under the European Union Savings Directive framework that allows customers an option to withhold tax.

Stephen Timms, financial secretary to the Treasury, said: "I warmly welcome this move by the Isle of Man, which reflects the aim of the Savings Directive to promote exchange of information for tax purposes.

"This will enhance transparency and help ensure that tax is paid where it is due."

The announcement was made at the annual Organisation for Economic Co-operation and Development forum in Paris by the Isle of Man Treasury minister, Allan Bell.