Tax avoidance strategy targetted
The Manx government has signed a new international treaty to tackle tax avoidance by multinational companies.
Representatives of more than 70 countries, including the Island, met in Paris last week (7 June) to sign the agreement at a convention held by the Organisation for Economic Co-operation and Development (OECD).
The document is aimed at a practice known as Base Erosion and Profit Shifting (BEPS), a tax avoidance strategy exploiting gaps in rules between jurisdictions, which sees profits shifted to low tax jurisdictions to reduce liability.
The multilateral convention means the new measures can be incorporated into thousands of tax treaties around the world, without with the need for countries to conduct separate negotiations.
Treasury Minister Alfred Cannan was at the signing ceremony in the French capital - he says the Island has a clear policy of complying with the latest international standards.