IoM Signs Tax Cooperation Agreements With Ireland

by Amanda Banks, for LawAndTax-News.com, London

28 April 2008

The Isle of Man, as part of its programme of developing closer economic and taxation co-operation with other countries, announced on Thursday that it has concluded agreements in this area with the government of Ireland.

The agreements - the first of their kind between Ireland and an international financial services centre - were signed at a ceremony in Dublin on Thursday, by the Isle of Man’s Treasury Minister Allan Bell and Ireland’s Tánaiste (Deputy Prime Minister) and Minister for Finance, Brian Cowen.

The two agreements are:

• A tax information exchange agreement based on the Organisation for Economic Co-operation and Development (OECD) model of exchange of information on request on a case by case basis; and
• An agreement for affording relief from double taxation with respect to certain income of individuals and establishing a mutual agreement procedure in connection with the adjustment of profits of associated enterprises.

Minister Bell commented:

"Ireland is one of our closest neighbours, and it is essential that we work together in a spirit of friendly co-operation to further the interests of both countries."

"The Isle of Man understands its obligations as a financial centre that is part of the global economic community. These agreements draw to a close a period during which the Irish government had concerns that its citizens and businesses might abuse the Isle of Man’s financial services and evade taxes at home."

"This normalising of relations will provide a platform for significantly strengthening our business and economic ties with Ireland. The specialist services in the Isle of Man can complement those in Ireland, and I now look forward to seeing many new opportunities develop for business between our countries."

In a brief speech at the signing ceremony, Minister Bell further announced that:

"The Isle of Man is meeting the international benchmark standards and fulfilling the resulting obligations as a small but significant player in the global economic community. These standards are becoming increasingly vital, and I hope, as I am sure that you do, that they are adhered to by all countries wishing to attract top-class investment and business to their shores."

He closed by stating that:

"These agreements represent the start of a new phase in relations between Ireland and the Isle of Man and will lead, I am sure, to the further development of our political, economic and cultural ties."

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