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HMRC will be furnished with a range of data about potentially taxable income in Manx bank accounts, after the government announced it will sign an enhanced tax information-sharing agreement with its counterpart in the Isle of Man.
The accord is set to be part of a package of measures being developed by the two administrations to combat tax evasion.
Under the new accord, the home nation and its dependency will automatically exchange a wide range of information on tax residents, on a reciprocal basis.
In an effort to minimise burdens on financial institutions, the arrangement will follow the UK-USA agreement to improve international tax compliance and implement the Foreign Account Tax Compliance Act.
It will be carried out on the same timetable as the accord being negotiated between the Isle of Man and the United States. Operational and implementation requirements are being discussed and will be announced soon.
The agreement ‘will significantly boost the UK’s ability to tackle cross-border tax evasion,’ claimed David Gauke, Exchequer secretary to the Treasury.
He added, ‘Automatic information exchange is an important tool in boosting HMRC's ability to clamp down on those who seek to hide their money overseas.
‘For years people said this couldn’t be done, so I welcome the progress we have made so far with the Isle of Man. We are looking to reach similar agreements with other jurisdictions, and are in discussions with Jersey and Guernsey about enhanced information exchange, as part of our common commitment to combat tax evasion,’ said the minister.
