IOM Parliament Endorses EUSD Policy

by Amanda Banks, Tax-News.com, London

18 June 2010

The Isle of Man’s parliament, the Tynwald, has endorsed the commitment made in June 2009, by the then Treasury Minister, Allan Bell, to a change of policy in relation to the EU Savings Directive that will see the Isle of Man move fully to an automatic exchange of information regime from July 1, 2011.

This means that the withholding tax option currently available to customers having accounts with Isle of Man banks by virtue of the transitional arrangements in the EUSD will be withdrawn.

In making the announcement during an Organisation for Economic and Cooperation Development conference in Paris, Bell indicated this was “further evidence that the Isle of Man is prepared to align its policies with international benchmark standards, which signals to our trading partners and investors alike that we can be relied upon and that our name is associated with probity and foresight.”

Preparation for this change has now moved forward significantly with the passing of the necessary legislation. Liaison work will continue with the island’s banks to ensure that the change is brought in smoothly and effectively.

Treasury Minister Anne Craine MHK, encouraged by the positive support the legislation received, said: “The Isle of Man is a small but significant centre in the global financial services market, and this move signals clearly to our partners in the European Union our commitment to work closely with them by maintaining an excellent regulatory and internationally co-operative business environment.”

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