IOM and the UK signed a bilateral agreement for the exchange of information for tax purposes on 29/09/2008 -

[milkeybar kid]

The agreement is here http://www.hmrc.gov.uk/international/isle-of-man-eol.pdf

The new TIEA seems to be pretty sweeping – making all kinds of information available to the UK tax people, provision to allow them to get IoM to gather additional information they may possibly foreseeable require, conduct tax interviews in IoM etc. It's by no means clear, but this may possibly now already been in force as from 29th September.

http://www.oecd.org/document/43/0,3343,en_2649_33767_41400747_1_1_1_37427,00.html

As I understand it: Tax avoidance is the legal utilization of the tax regime to one's own advantage, in order to reduce the amount of tax that is payable by means that are within the law. By contrast tax evasion is the general term for efforts to not pay taxes by illegal means.

Is anyone up to speed with what's going on here?

I think now I better lose my name and password again for a few months[:D] Mrs MBK

 

[Pickles]

Correct me if I am wrong (I'm sure someone will) but I was under the impression that if one has funds held "offshore", then in most "offshore" jurisdictions, you have the choice of either full disclosure of information with your own tax authorities or else payment of a withholding tax (under the European Savings Tax Directive?). IIRC, if the "offshore" jurisdiction does not either swap info or withhold tax then it has some (prejudicial) ramifications for the relationship between the EU and that jurisdiction. Now, some "offshore" jurisdictions offer you the choice between swapping info or withholding tax, but they do not necessarily have to give you the choice - in this case it looks like the IoM approach now is to swap info with HMRC and therefore not get involved with the withholding tax. Isn't that all it is about?

Regards

Pickles

[Slippery Sam]

The Isle of Man Government and France will sign a tax agreement today.