UK and Isle of Man to share tax information to clamp down on evasion

The UK and the Isle of Man have signed a tax information exchange agreement in an attempt to tackle tax evasion.

A wide range of information will be shared between both locations, with taxable income placed in Manx bank accounts among the details of interest.

HM Revenue and Customs (HMRC) says the agreement is part of its harder clampdown on offshore money and tax evasion, a move the government is encouraging with extra funding and resources.

Exchequer Secretary to the Treasury, David Gauke, explained that the agreement will "significantly boost" the UK's resources on cross-border tax evasion.

"Automatic information exchange is an important tool in boosting HMRC's ability to clamp down on those who seek to hide their money overseas," he noted.

"Our ground breaking agreement with the US sets a new standard in international tax transparency and today's agreement between the UK and Isle of Man to move to much greater levels of automatic exchange is the next step in this process."

Chancellor George Osborne said in last week's Autumn Statement that HMRC can hire 2,500 more tax investigators in the coming years.

Posted by Thomas Fletcher

Date published 10 Dec 2012 | Last updated 10 Dec 2012