Deal signed to counter profit shifting Read more at: http://www.iomtoday.co.im/news/isle-of-man-news/deal-signed-to-counter-profit-shifting-1-8198001
New Chief Minister Howard Quayle MHK has restated the island’s commitment to tax transparency at an Organisation for Economic Co-operation and Development event in Paris.
Mr Quayle was in Paris for the Manx government’s signing of a new OECD agreement on automatic exchange of country by country reporting by large multi-national companies to ensure tax is paid where value is created.
The agreement aims to be tackle moves by multi-nationals to shift profits to low tax jurisdictions, allowing them to pay very little tax in the countries where they operate. It is understood that the agreement will have little impact in the Isle of Man, however.
After his meeting with the OECD Secretary General Angel Gurria, Mr Quayle said: ‘A truly global approach to tax transparency and information sharing is needed. The Isle of Man is committed to playing its part in efforts to achieve this.’
Friday’s signing of the BEPS (Base Erosion and Profit Shifting) agreement by the Isle of Man, Brazil, Guernsey, Jersey and Latvia brings the total number of signatories to 49.
Back in 2011, the Examiner revealed how US multi-national Procter and Gamble’s base at Brewery Court, Castletown, was the unlikely hub of a global shipping empire that paid more VAT than any other company in the island. P&G’s departure in 2014 did not affect our indirect taxation receipts, however, as this was VAT collected on behalf of the UK and our share from the Customs pool is determined on VAT consumption not collection.