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18 | News analysis
“As well, we had helpful discussions regarding
The Isle of Man is not, and never has been, part of the United Kingdom, nor is it part
the Kaupthing Singer Friedlander Bank
of the European Union. It is not represented at Westminster or in Brussels. situation.”
The Island is a self-governing British Crown Dependency with its own parliament, The Chief Minister added: “The United
government and laws. The UK government, on behalf of the Crown, is ultimately Kingdom Government recognises that the
responsible for its international relations. The Queen, as ‘Lord of Mann’, is the Manx
Isle of Man has been a leading proponent in
Head of State.
efforts to bring greater transparency and
On May 1, 2007 Chief Minister Brown and the then Lord Chancellor Lord Falconer
fairness to cross-border financial t© Grransaaham Tctioaylnsor
signed a landmark declaration of principles reinforcing the Island’s status within the
by signing Tax Information Exchange
context of its constitutional relationship with the UK. The document includes the
Agreements. This was recognised by the OECD
explanation: ‘The framework is intended to clarify the constitutional relationship
when the Isle of Man signed its TIEA with the
between the UK and the Isle of Man, which works well and within which methods are
UK.”
evolving to help achieve the mutual interests of both the UK and the Isle of Man.’
On September 29 2008 the Chief Minister and the UK Minister for State for
Regulatory review
Constitutional Renewal Michael Wills MP signed new agreements updating the
The Government has said that Michael Foot,
taxation relationship between the Isle of Man and the UK, including a new agreement
currently Chairman of the UK Office of
Promontory Financial Group, will lead the
to facilitate the exchange of information relating to taxes.
independent review of British offshore finan-
In July this year the Treasury Select Committee visited the Isle of Man, at the
cial centres announced at the Pre-Budget
invitation of the Manx Government, as part of its inquiry into ‘Offshore Financial
Report 2008.
Centres.’
The review will look at the immediate and
long-term challenges facing British offshore
Darling appears to be in the dark over this issue, The meeting, held in London on Thursday financial centres in the current economic
the position of the Isle of Man Government is November 13 2008 was requested by climate, including: financial supervision and
clear. We are not asking the UK for any favours, Mr Brown following the recent public transparency; taxation, in relation to financial
but they do have a constitutional responsibility comments by the Chancellor of the stability, sustainability and future competitive-
to represent us internationally. We have also Exchequer. ness; financial crisis management and resolu-
pointed out, in support of depositors with the The Chief Minister said: “Our meeting with tion arrangements; and international
local bank, that the closure of Kaupthing Singer the Lord Chancellor was most positive. I am cooperation.
& Friedlander in the Isle of Man was the direct pleased that we have received assurances that the The Government has been clear that the
result of actions taken by the UK Government.” United Kingdom has no plans to examine the variety of existing constitutional arrangements
Tony Brown described his meeting with Lord constitutional relationship between us – a rela- in place across these territories will continue to
Chancellor Jack Straw to discuss relations tionship which remains robust and is clearly be respected, including their independence in
between the Isle of Man and the United defined by a framework signed between our two fiscal matters and the setting of their own rates
Kingdom as positive and reassuring. governments in 2007. of taxation.
January 2009 Investment International www.investmentinternational.com
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