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News analysis | 17
Fundamental
review or Whitehall
sabre-rattling?
Conflicting messages appear to be emerging from
HM Treasury and the Isle of Man government
regarding the island’s status
by Jonathan Ball
T
he past two months has seen a The Isle of Man government has expressed its commitment to working with Gordon Brown’s
somewhat confusing exchange of “surprise” with regard to Darling’s remarks. In Government.
views between HM Treasury and the circumstances, “surprise” is a thoroughly “The Isle of Man actually leads the way
the Isle of Man government. The diplomatic observation. internationally on actively signing such agree-
Treasury, or more specifically Isle of Man Finance Director John Spellman ments,” he said.
Alistair Darling the Chancellor, said he hoped Darling’s remarks do not deflect
has made a number of remarks critical of the the UK Government from representing the Isle Darling dilemma
island’s status as a tax haven. The Isle of Man of Man in its negotiations with Iceland to ensure Isle of Man Chief Minister Tony Brown also
government has vigorously responded with a Kaupthing depositors get their money back. sought clarification of the British Government’s
strong rebuttal of Darling’s contentions. Spellman said: “We, in the Isle of Man, are position following the comments from
Chancellor Darling told the Treasury Select very surprised by the comments made by Chancellor Darling.
Committee in November the Government Alistair Darling. The Chief Minister said: “Alistair Darling’s
would review its relationship with what he “Rather than being a “tax haven” we have comments were most unfortunate, to say the
described as “an offshore tax haven”, in the actively sought to provide sound regulation least. He did not seem to be aware that the rela-
wake of the Icelandic banking crisis. and a competitive commercial environment. tionship between the United Kingdom and the
“I actually think when we look at what has But we also play our part in the international Isle of Man has already been reviewed, and that
happened over the last few months we really do fight against money laundering, terrorism and an agreement reinforcing that relationship was
need a long, hard look at the relationship tax evasion. signed by the Lord Chancellor on behalf of the
between this country and the Isle of Man tax “We have a good relationship with the UK UK Government in May last year.
haven sitting in the Irish Sea,” Darling said. and are a major contributor, via the City of “Mr Darling made no mention either of the
“We can’t have a situation where all sorts of London, to their economy.” new tax co-operation agreements signed
tax advantages accrue to the Isle of Man but Spellman adds the Isle of Man has recently between the Isle of Man and the UK on
when things go wrong people say what about signed a Tax Information Exchange Agreement September 29.”
the British compensation scheme,” he added. (TIEA) with the UK as proof of its The Chief Minister continued: “While Mr
www.investmentinternational.com January 2009 Investment International
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