IOM Comments On OECD International Tax Statement

by Jason Gorringe, Tax-News.com, London

04 March 2002

The Isle of Man announced on Friday that it welcomes the OECD's statement on tax practices in offshore financial centres, published following the February 28 deadline. The Channel Island authorities also endorsed an earlier statement by Gabriel Makhlouf, the Chair of the Committee on Fiscal Affairs, who stated that implementation of the jurisdiction's commitment to improving transparency would strengthen the Island's role in the international finance community.

Ian Kelly, the Isle of Man Tax Assessor commented last week that:

'The expansion of the global economy depends on international finance centres - both onshore and offshore - combining a highly competitive, entrepreneurial environment for business with a quality of regulation that safeguards a company's reputation. That is why we support the OECD's efforts to ensure that tax competition is fair as well as keen.'

However, he reiterated the concerns expressed by several offshore jurisdictions last week, that the international tax initiative operate on a 'level playing field', asserting that equality of treatment is 'absolutely fundamental to the success of the initiative.'

An OECD spokesman responded by announcing that: 'We are looking forward to the Isle of Man's continuing participation on the basis of their commitment which has been made and accepted.'

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