19th February 2013
HM Treasury has announced a new Isle of Man Disclosure Facility – IoMDF. Below we have reproduced the Press Release but we will be bringing you our detailed analysis of the new facility shortly along with considerations as to whether the IoMDF is a game changer in terms of either the UK/Swiss Agreement or the LDF.
UK – Isle of Man cooperation to combat tax evasion
The Government has today agreed action with the Isle of Man to clamp down 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 includes 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. It follows closely the UK-US agreement to Improve International Tax Compliance and to Implement FATCA in order to minimise burdens on financial institutions.
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.”
Tax transparency will be a focus of the UK’s G8 presidency, where it will look to further promote automatic information exchange.