Report Urges Manx Government To Seek 'Specialist Advice' On International Law When Tackling Multilaterals' Initiatives

Amanda Banks, Tax-news.com, London

21 March 2001

The Isle of Man government should seek independent specialist legal advice on international law to help it understand the legal context in which it is being called upon to operate by international agencies such as the United Nations, the European Union, the International Monetary Fund, and the OECD.

This is according to recommendations made in a report by the Tynwald Standing Committee on Economic Initiatives. The Committee was created to monitor the economic, fiscal and monetary initiatives of international and multilateral agencies which have the potential to significantly affect the island's economy. This is the Committee's second report, following one late last year dealing with double taxation agreements and exchange of information.

The report, entitled "The Legal Context of Contemporary Economic Initiatives", states: 'A range of international bodies are taking decisions and conducting enquiries which may affect the present economy, and the future development, of the Isle of Man ... In this report we offer a preliminary consideration of the legal context in which some of these bodies are taking, or propose to take, action which may have economic consequences for the Isle of Man.'

The report makes careful analysis of the aforementioned agencies including their 'various associated bodies' such as the FATF. Its aim, states the Committee, is not to 'offer an exhaustive legal analysis ... but to ... lead to somewhat greater emphasis being laid on it.'

The Committee's findings led it to conclude that there is 'significant variation' in the legal context of the economic initiatives undertaken by the international agencies. The report explains: 'this may affect both the competence to undertake the initiatives as they affect the Isle of Man and also the way the initiatives are conducted. We believe that these are considerations which could, perhaps, play a more central role in the strategic thinking of the government when responding to such initiatives. To that end we recommend that the government take independent specialist legal advice on the international law and community law issues raised in this report.'

The full text of "The Legal Context of Contemporary Economic Initiatives" Report can be found at: http://www.tynwald.isle-of-man.org.im/papers/reports.htm

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