Isle Of Man Finance Highlights Recent Achievements In August Newsletter

by Jason Gorringe, Tax-News.com, London

27 August 2008

Isle of Man Finance, the Treasury division responsible for the promotion and development of the financial services sector of the jurisdiction's economy, has this week published the August edition of its newsletter, summing up the recent achievements of the Island and its businesses.

IoM Finance Marketing Manager, Ray Davied began the newsletter by observing that:

"The Island’s ability to run a first class international finance centre – despite the adverse global forces – has been underscored by Standard & Poor’s decision to again award the Isle of Man its highest ‘AAA’ sovereign credit rating."

He also revealed that:

"Even while taking current volatility into consideration, the Island’s growth projection remains a healthy six percent. This maintains the Isle of Man’s enviable track record of sustaining more than two decades of continuous economic growth."

The Isle of Man Finance newsletter went on to praise the jurisdiction's achievement in receiving the ‘Best International Financial Centre’ award from industry publication International Investment.

It observed that:

"The Island has been awarded the accolade seven out of the eight years since the fund and product awards were inaugurated," and further revealed that:

"Isle of Man based companies also took awards in ten out of the 14 categories by either outright wins or as part of an international offering. A further nine Island companies were highly commended."

The Department also drew attention to the tax cooperation agreements signed with Ireland in April of this year, and quoted Treasury Minister Allan Bell as observing that:

"Ireland is one of our closest neighbours and it is essential that we work together in a spirit of friendly cooperation 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 in which the Irish government had concerns that its citizens and businesses might abuse Isle of Man financial services to 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."

The recent ratification of Tax Information Exchange Agreements (TIEAs) with seven members of the Nordic Council – Denmark, Finland, Greenland, Iceland, Norway, Sweden and the Faroe Islands – was also flagged up.

The newsletter additionally drew attention to the role played by the Isle of Man in the GBP65mn flotation of leading Indian power group, OPG Power Ventures, and to the decision of BNP Paribas Securities Services, part of France’s biggest bank, to open a new office in the Isle of Man.

Isle of Man Finance also highlighted the decision of Norwegian shipping magnate, Lars T Ugland to move to the Island last September, following the establishment of his latest venture, LT Ugland Bulk (IOM) Ltd.

The Treasury division observed that:

"While few industries are immune from the global credit squeeze, shipping seems to be faring better than most: ‘In the first three months of this year there were 50 percent fewer shipping loans granted by the world’s biggest ship financiers compared to the same period in 2007. But the squeeze has not yet affected the shipping market in any noticeable way."

"The main reason for this is that the booming economies of China and India are continuing to drive the locomotive forward. Their business is compensating for the downturn in the USA, which was formerly the biggest player in the market."

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