Isle of Man and UK to crack down on promotors of tax avoidance schemes

The Isle of Man and UK governments issued a joint statement on 27 May following their agreement to explore ways to crack down on promotors of tax avoidance schemes.

The UK and the Isle of Man were amongst the early adopters of the OECD Common Reporting Standard, which facilitates the automatic exchange of financial account information between jurisdictions, and both are working on the Crypto-Asset Reporting Framework which will see the automatic exchange of information on crypto-assets.

Both jurisdictions have also recently implemented measures in relation to the Global Base Erosion Rules under the OECD’s Pillar 2 Global Minimum Tax.

“Both governments are committed to taking robust action to deter and disrupt the activities of those who seek to promote marketed tax avoidance schemes that threaten our tax systems and the reputations of our well-established and globally attractive service sectors,” said the joint statement.

“Recognising the need to go further and noting the UK government’s ongoing consultation on steps to crack down on promoters of marketed tax avoidance schemes, we are pleased that we have been able to agree today to explore ways to further enhance information flows, joint working, and other ways in which tangible benefits for both jurisdictions can be achieved.

“We look forward to continuing our partnership and achieving tangible results in our shared objective of combatting tax avoidance and evasion,” it concluded.