Isle of Man removed from Italian blacklist
The Italian Ministry of Economy and Finance has removed the Isle of Man from its blacklist.
The new list implements provisions, announced in the Italian Budget for 2015, that jurisdictions that have exchange of information arrangements with Italy are excluded from its blacklist on the deductibility of costs.
The effect of this was that Italian companies dealing with the Isle of Man had to jump through a lot of hoops to ensure that expenses were tax deductible.
Now trading with the Isle of Man will be easier.
Since 2005 the Isle of Man and Italy have been exchanging information on savings income under arrangements that are equivalent to the European Union Directive on the Taxation of Savings Income and on March 1 exchange of information was enhanced when the OECD Convention on Mutual Administrative Assistance in Tax Matters entered into force in the Isle of Man.
The island’s relationship with Italy will be further enhanced when the Tax Information Exchange Agreement (TIEA) signed in September 2013 enters into force which is expected to be later this year; and again in 2017 when automatic exchange of information under the Common Reporting Standard begins.
Treasury Minister Eddie Teare welcomed the removal of the Isle of Man from the Italian blacklist.
He said: ‘The Isle of Man welcomes the Italian Republic’s recognition of the island’s longstanding commitment to transparency and exchange of information for tax purposes.
‘The removal of the Isle of Man from the Italian blacklist follows a similar move by the Republic of Colombia in 2014, and will be welcome news for those on the island doing business in Italy.’
