PeopleYou are in: Isle of Man > People > Will a Democratic win spell changes in the Isle of Man? Will a Democratic win spell changes in the Isle of Man?If Barack Obama's Democrats win the US Presidential race, how will their views on offshore banking loopholes affect the Isle of Man? BBC IOM spoke to Treasury Minister Alan Bell to find out. - Q: Could you please clarify the difference between a Tax Haven and an Independent Financial Centre?
- A: I think the main difference revolves around the level of secrecy. Most Tax Havens are identified as having banking secrecy. The Isle of Man does not have banking secrecy. A Tax Haven also shows a lack of co-operation and transparency with the international community, particularly on criminal matters and regulatory concerns. The Isle of Man is quite different from that stereotype. We do not have banking secrecy and never have done. We have bank confidentiality which is the same as the UK and most other countries and we fully co-operate with the international community on criminal matters and on tax evasion issues. The Isle of Man has a well-established, international reputation to prove that.
- Q: If Barack Obama is elected will changes have to be made on the Isle of Man?
- A: I think there is a lot of work that has to be done. I have visited the United States on several occasions and, in fact, have met Obama’s Senior Policy Advisors to explain the difference between their perceptions of what a Tax Haven is and indeed what a regulated, small financial centre like the Isle of Man has to offer. I think there is still work to be done to convince the US Administration, Obama or, indeed, the Republicans that there is a major difference between Tax Havens and the Isle of Man's finanical system. We will still have to continue the process of visiting Washington to convince the US Administration of those differences but I do believe we are making progress and that ultimately the election of a Democratic Administration will not be to damaging for the Isle of Man and indeed for other small financial centres that are well regulated, transparent and fully co-operative.
- Q: Does the Isle of Man help American individuals or companies to avoid tax?
- A: In 2002, I went to Washington to sign our first Tax Information Exchange Agreement with the Treasury Secretary of that time, Paul O'Neill. Since that time and indeed, way back into the 90s, the Isle of Man has always co-operated with the US Authorities on criminal matters and on matters of tax evasion. We do not encourage any abuse of our financial system; our financial regulations are as tough as any international body would require. We meet all international standards and we work with the US Authorities and have done on many occasions to track down wrong-doers and see that they are brought to justice. So the simple answer is, no, the Isle of Man does not and will not encourage that sort of activity and indeed in a general sense, the Isle of Man has a relatively small amount of US business going through our system and therefore we believe that the co-operation that we give will prevent any future abuse.
last updated: 02/09/2008 at 12:43
created: 02/09/2008 You are in: Isle of Man > People > Will a Democratic win spell changes in the Isle of Man? |
