Island removed from tax 'grey list'

Promised tax reforms successfully implemented

The Isle of Man has been removed from the EU's grey list of non-cooperative tax jurisdictions today (Tues 12 Mar).

Chief Minister Howard Quayle tweeted he was "delighted" with the news:

Delighted to see the #IsleofMan removed from the EU's grey list of non-cooperative tax jurisdictions today. This is testament to the ongoing hard work to ensure the #IOM is an internationally responsible jurisdiction. @EU_Commission #tax #transparency #governance #Manx 🇮🇲 https://t.co/rAygI9y2kQ

— Howard Quayle (@HowardQuayleMHK) March 12, 2019

The Island was placed on that list in 2017.

Shortly after the release of the Paradise Papers, the EU announced a crackdown on countries which allowed so-called 'brass plate' companies to turn a profit, without actually doing any business there.

The Isle of Man, Channel Islands, Hong Kong and Switzerland were put on a list of jurisdictions not necessarily considered problematic, but which would have to meet 'specific commitments' on tax transparency.

In response, the Manx government promised action by the end of 2018.

The EU's Economic and Financial Affairs Council (Ecofin) has confirmed the Isle of Man was one of 32 jurisdictions to implement the promised reforms by the end of last year.

These included improving transparency, stopping harmful tax practices and implementing international standards.

More information about Ecofin's decision can be found here.