Laws to target brass plate companies

IoM looking to get off EU 'grey list'

Government will consult with the finance sector as it prepares new measures to help clean up the Island's tax image.

An update on proposals to have the Isle of Man removed from a European Union 'grey list' has been published.

Shortly after the release of the Paradise Papers last year, the EU announced a crackdown on countries which allowed so-called 'brass plate' companies to turn a profit without actually doing any business there.

The Isle of Man, Channel Islands, Hong Kong and Switzerland were put on a list of jurisdictions not necessarily considered problematic, but which would have to meet 'specific commitments' on tax transparency.

The Manx government promised action by the end of this year.

Ministers are now planning legislation which would require offshore banks, insurers, and finance firms to demonstrate a minimum amount of local economic activity.

That could mean locally based directors and managers, employing on-Island staff, or physical office space.

The chief minister says companies will be asked for their views, and government will 'listen and act on the words of industry'.