Tax accord a fillip for Island's reputation

The Island's financial service sector will face extra costs in complying with the new tax information-sharing agreement the Manx government has signed with the UK.

But it's likely to benefit from an improved image on the international stage.

The signing of a deal, extending the automatic disclosure of tax information by Chief Minister Allan Bell last week, has been held-up by Chancellor George Osborne as a momentous step forward in combating tax evasion.

And he's praised the Isle of Man for taking the lead among offshore jurisdictions.

Allan Bell says relations with the UK Treasury are warmer than ever as a result.

But corporate service providers face having to absorb the extra costs involved in complying with FATCA.

Tax Director at Douglas accountancy firm BDO Philip Dearden says it will benefit the Island's good reputation long-term: