IoM Announces Chinese Tax Pact

by Amanda Banks, Tax-News.com, London

29 October 2010

The Isle of Man has announced the signing of its seventeenth Tax Information Exchange Agreement, with China.

The text was signed at a ceremony on October 26 by Anne Craine, the Isle of Man’s Treasury Minister, and Xiao Jie, the Chinese Minister of the State Administration of Taxation.

In its announcement, the Isle of Man government noted that the landmark agreement with China is further evidence of the Isle of Man’s long standing commitment to tax transparency and effective information exchange. When the agreement enters into force, after ratification by both countries, it will allow the respective jurisdictions’ tax authorities to request access to information to aid in civil tax matters and in investigations of fiscal crime.

Welcoming the agreement, Craine stated: “The visit of Minister Xiao and the signing of the agreement are important steps in building closer relations between China and the Isle of Man. The announcement last week that the Isle of Man is now an approved jurisdiction for the purposes of listing companies on the Hong Kong Stock Exchange, the fact that Chinese businesses regularly use Manx companies for raising capital on the London AIM, and research showing that the Isle of Man could increase the profitability of Chinese exporters to the UK and Europe, all indicate that economic ties between our countries will grow.”

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