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Tax evasion deal with Isle of Man
Chancellor George Osborne welcomed the deal with the Isle of Man authorities to clamp down on off-shore tax evasion
The Government has reached an agreement with the Isle of Man authorities to clamp down on off-shore tax evasion.
Under the agreement, a wide range of financial information on UK taxpayers with accounts in the Isle of Man will be passed automatically to HM Revenue and Customs (HMRC).
A disclosure facility will allow account-holders to come forward and settle their past affairs before the details are passed on to HMRC.
Welcoming the agreement, Chancellor George Osborne said: "The Government is committed to tackling tax evasion and this agreement will greatly enhance HMRC's ability to clamp down on those who try to hide their money offshore.
"I welcome the progress made with the Isle of Man and look forward to working on this new standard in the automatic exchange of tax information."
The Treasury said the deal with the Manx authorities closely followed an agreement struck with the United States to improve international tax compliance.
It follows an agreement last month with Switzerland to recover previously unpaid UK tax on funds held in Swiss accounts which is forecast to bring in more than £5 billion over the next six years.
Discussions are also taking place with the authorities in Jersey and Guernsey on improving the exchange of financial information.
"Today's agreement builds on the groundbreaking work we have already carried out - the UK Government has signed agreements with the US and Switzerland so far and we are in discussions with Jersey and Guernsey as part of our common commitment to combat tax evasion," Mr Osborne said.
The Government has said that enhancing international tax transparency will be one of the key themes of Britain's presidency of the G8.
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