News
UK Treasury in Three-Year Tax Agreement with Isle of Man
21 - 02 - 2013
A three-year deal which aims to clamp down on tax evasion has been signed by the UK Treasury and the Isle of Man authorities.
The agreement, which targets people who are trying to hide money offshore in order to avoid a tax bill, may reap hundreds of millions of pounds.
Under the agreement, financial information on UK taxpayers who have bank accounts on the island will be automatically passed to HMRC.
UK citizens hiding money in the Isle of Man have three years to come forward to admit that they have been evading tax and pay a discounted penalty. If tax evaders do not come forward and pay what they owe, they will face higher penalties (up to 200% of the unpaid tax) and the possibility of prosecution.
The deal was modelled on an agreement with the US to improve international tax compliance – the Foreign Account Tax Compliance Act (Fatca).
Eddie Teare, the Isle of Man Treasury minister, described the deal as ‘game changing’ and said it would give international investors confidence that they were ‘dealing with a regime which complies [with] global standards of best practice.’
Chancellor George Osborne has also welcomed the agreement.
‘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,’ he said.
The disclosure facility is expected to open on 6 April and close in September 2016.
