The Isle of Man government has labelled Michael Foot's interim review of British offshore financial centres as "wholly appropriate".
In a progress report, Foot says tax transparency, liability and financial supervision will be the central themes of his review of British offshore financial centres.
His brief is to explore the long-term opportunities and challenges facing Britain's nine offshore centres in the wake of the collapse of the Icelandic banks and other controversies.
"The Isle of Man regards the review of British offshore financial centres as a wholly appropriate action given the unprecedented global financial turmoil affecting all economies," says Isle of Man chief minister Tony Brown.
"As a responsible International Business and Finance Centre with strong relations and interaction with the UK it is only appropriate we work together to examine our economic models in light of the new world that is emerging."
Brown says the Isle of Man provided Foot with information about its intentionally recognised standards on regulation and tax as well as how it is performing in the global downturn.
"Our progress on signing 14 tax information exchange agreements, placing us firmly on the OECD's 'white list' of jurisdictions that have substantially implemented internationally agreed tax standards, was welcomed by Mr. Foot and in a letter to me from Gordon Brown," he adds.
Meanwhile, Jersey's chief minister, senator Terry Le Sueur, says the report is a "very constructive explanation" of how the Foot Review will be conducted.
"It confirms there will be continued collaboration with the UK government at a time of international uncertainty, and makes it clear that the constitutional position of the financial centres is not within its scope," he says.
The review will discuss the following questions with nine British offshore financial centres:
- What steps are you taking to further the exchange of tax information?
- When do those centres that have not yet implemented the international standard (those on the OECD grey list) expect to do so?
- What are the impediments to rapid implementation of the standard and what practical steps could be taken to mitigate these?
Isle of Man treasury minister, Allan Bell will join Tony Brown in discussions with Foot this week in London.
The report is available at: http://www.hm-treasury.gov.uk/indreview_brit_offshore_fin_centres.htm.
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