The Isle Of Man (until recently considered as a major tax haven) this month became the first British Crown Dependency to extend its Tax Information Exchange Agreement with the United Kingdom – by pledging to share financial information on a bulk automatic basis: rather than waiting for individual requests.
As part of the recent deals between the UK and the Manx government British residents with assets on the island have until September 2016 to make a disclosure of any tax irregularities to HM Revenue & Customs on preferential terms, and pay any additional tax, interest and penalties (usually of 10% or 20%). From then on financial data on UK residents with accounts on the island, plus information regarding companies and trusts, will be reported to HMRC automatically. Anybody with undisclosed tax issues who hasn’t come forward and made an unprompted disclosure before then will face substantially stiffer penalties, and possibly a criminal investigation.
Isle of Man chief minister Allan Bell said: “The Isle of Man was the first to strike this agreement with the UK and we are now the first to sign, demonstrating the clear commitment of both countries to the development of a new global standard in automatic exchange.”
It seems highly likely that agreements with the Crown Dependency Channel Islands of Jersey and Guernsey will follow very shortly.
Lynam Tax partners have a vast amount of practical experience in managing tax investigations and tax enquiries. We can advise you on the best course of action and if appropriate, help you manage any necessary disclosures, in order to obtain the optimum outcome for you, your business and your family.
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