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New tax laws may boost business - claim

OECD and G20 propose new regulations

Tough new tax rules could benefit the Island by forcing Manx-registered companies to establish a greater presence locally.

The OECD and G20 countries have proposed a new set of regulations, which have been dubbed 'the most fundamental in a century'.

They follow the recent backlash against multinational companies such as Google and Starbucks, who had their financial affairs managed in offshore jurisdictions.

Thousands of companies have their headquarters on the Isle of Man, where they can enjoy a zero per cent rate of corporation tax.

But the new rules would mean those companies have to conduct significant business in the place where they are headquartered.

Robert Rotherham is an associate director at KPMG.

He explains how the changes could encourage corporations to grow their presence on the Island:

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