Isle of Man

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Overall Phase 2 Rating is Compliant

Table of Determinations and Ratings of the Combined Review

Jurisdictions should ensure that ownership and identity information for all relevant entities and arrangements is available to their competent authorities. (ToR A.1)
Determination Factors Recommendations
The element is in place.   Recent amendments to the Isle of Man’s tax law requires foreign companies to include in their annual tax returns either a schedule of significant shareholders or the contact information of a person who is responsible for holding information on all owners. However, such provisions do not impose a complementary obligation on the nominated individual to hold such information. No offence is committed by the company or the nominated individual if such information is not held.  Where foreign companies are resident for tax purposes in the Isle of Man, rules should be in place to ensure the availability of legal ownership information of such companies. 
Whereas requirements to hold beneficial ownership information were not supervised in all cases over the review period, the Isle of Man passed the 2017 Beneficial Ownership Act, which envisions supervision by the financial regulator. However, as this law is recent, its effectiveness could not be tested in practice.  The Isle of Man is recommended to monitor the implementation and supervision of beneficial ownership requirements recently introduced into its law. 
Phase 2 Rating Factors Recommendations
Largely Compliant.  Although limited partnerships are required to engage an AML-obliged service provider, no comparable provisions exist in the Partnership Act to require general partnerships to engage an AML-obliged service provider. Further, general partnerships are not covered by the Beneficial Ownership Act 2017. However, beneficial ownership information will be available for natural persons or Manx corporate partners through the Isle of Man’s legal framework, so the gap pertains to beneficial ownership information for foreign corporate partners.   The Isle of Man is recommended to ensure that beneficial ownership information is available for all general partnerships. 
   
Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements. (ToR A.2)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
Banking information should be available for all account-holders. (ToR A.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
Competent authorities should have the power to obtain and provide information that is the subject of a request under an exchange of information arrangement from any person within their territorial jurisdiction who is in possession or control of such information (irrespective of any legal obligation on such person to maintain the secrecy of the information). (ToR B.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The rights and safeguards (e.g. notification, appeal rights) that apply to persons in the requested jurisdiction should be compatible with effective exchange of information. (ToR B.2)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdictions' mechanisms for exchange of information should have adequate provisions to ensure the confidentiality of information received. (ToR C.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The exchange of information mechanisms should respect the rights and safeguards of taxpayers and third parties. (ToR C.4)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdiction should provide information under its network of agreements in a timely manner. (ToR C.5)
Determination Factors Recommendations
The assessment team is not in a position to evaluate whether this element is in place, as it involves issues of practice that are dealt with in the Phase 2 review.      
Phase 2 Rating Factors Recommendations
Compliant.     

Earlier self-assessment based annual reports entitled Tax Co-operation 2010: Towards a Level Playing Field are also available.