93-565: Douglas Head (Manx: Kione Ghoolish ) is a rocky point on the Isle of Man overlooking Douglas Bay and harbour. Views extend to include Snaefell Mountain and Laxey . Until 1870, the headland was owned by The Nunnery Estate when Sir John Goldie-Taubman gave part of it to 'the people of Douglas' by donating it to Douglas Town Council . The headland was a popular area during the Victorian tourism period with access available via South Quay or by using
186-648: A § Top 10 tax havens in all three quantitative lists, Hines 2010, ITEP 2017 and Zucman 2018 (above); all nine such § Top 10 tax havens are listed below. (♣) Appears on the James Hines 2010 list of 52 tax havens; 17 of the 20 locations below, are on the James Hines 2010 list. (Δ) Identified on the largest OECD 2000 list of 35 tax havens (the OECD list only contained Trinidad & Tobago by 2017); only four locations below were ever on an OECD list. (↕) Identified on
279-406: A consequence they have few bilateral tax treaties . Modern corporate tax havens have non-zero "headline" rates of taxation and high levels of OECD compliance, and thus have large networks of bilateral tax treaties. However, their base erosion and profit shifting ("BEPS") tools enable corporates to achieve "effective" tax rates closer to zero, not just in the haven but in all countries with which
372-472: A hybrid "territorial" tax system, and proposed EU Digital Services Tax regime, and EU Common Consolidated Corporate Tax Base ). While areas of low taxation are recorded in Ancient Greece, tax academics identify what we know as tax havens as being a modern phenomenon, and note the following phases in their development: There is no established consensus regarding a specific definition for what constitutes
465-478: A lack of strategic value of Man during the era of Britannia. No Roman lighthouses or signal towers have yet been found on Man. Around the 5th century AD, large-scale migration from Ireland precipitated a process of Gaelicisation , evidenced by Ogham inscriptions, and the Manx language developed. It is a Goidelic language closely related to Irish and Scottish Gaelic . In the 7th century, Man came under control of
558-476: A list of 52 tax havens , which he had scaled quantitatively by analysing corporate investment flows. Hines' largest havens were dominated by corporate tax havens, who Dharmapala noted in 2014 accounted for the bulk of global tax haven activity from BEPS tools. The Hines 2010 list was the first to estimate the ten largest global tax havens, only two of which, Jersey and the British Virgin Islands, were on
651-534: A loss of tax revenues to countries which are not tax havens. Estimates of the § Financial scale of taxes avoided vary, but the most credible have a range of US$ 100–250 billion per annum. In addition, capital held in tax havens can permanently leave the tax base (base erosion). Estimates of capital held in tax havens also vary: the most credible estimates are between US$ 7–10 trillion (up to 10% of global assets). The harm of traditional and corporate tax havens has been particularly noted in developing nations, where
744-513: A sixth kingdom, that of the sea, or Neptune . The Isle of Man has a temperate oceanic climate ( Köppen Cfb ). Average rainfall is higher than averaged over the territory of the British Isles, because the Isle of Man is far enough from Ireland for the prevailing south-westerly winds to accumulate moisture. Average rainfall is highest at Snaefell , where it is around 1,900 millimetres (75 in)
837-526: A tax haven. This is the conclusion from non-governmental organisations , such as the Tax Justice Network in 2018, from the 2008 investigation by the U.S. Government Accountability Office , from the 2015 investigation by the U.S. Congressional Research Service , from the 2017 investigation by the European Parliament, and from leading academic researchers of tax havens. The issue, however,
930-479: A welcome further development of the island's international relationships." Most Manx politicians stand for election as independents rather than as representatives of political parties. Although political parties do exist, their influence is not as strong as in the United Kingdom. There are three political parties in the Isle of Man: There are also a number of pressure groups on the island. Mec Vannin advocate
1023-630: A year. At lower levels it can be around 800 millimetres (31 in) a year. In drier spots, the Isle of Man is sunnier than either Ireland or the majority of England at 1,651 hours per year at the official Ronaldsway station. The highest recorded temperature was 28.9 °C (84.0 °F) in Ronaldsway on 12 July 1983. Due to the moderate surface temperatures of the Irish Sea, the island does not receive bursts of heat that sometimes can hit Northern England. The stable water temperature also means that air frost
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#17331044533281116-511: Is a long history of relations and cultural exchange between the Isle of Man and Ireland . The Isle of Man's historic Manx language and its modern revived variant are closely related to both Scottish Gaelic and the Irish language and, in 1947, Éamon de Valera , the Taoiseach of Ireland, spearheaded efforts to save the dying Manx language. The Isle of Man is not part of the United Kingdom; however,
1209-503: Is an island located in the middle of the northern Irish Sea , almost equidistant from England to the east, Northern Ireland to the west and Scotland (closest) to the north, while Wales to the south is almost the distance of the Republic of Ireland to the southwest. It is 52 kilometres (32 mi) long and, at its widest point, 22 kilometres (14 mi) wide. It has an area of around 572 square kilometres (221 sq mi). Besides
1302-652: Is claimed to have been in continuous existence since 979 or earlier, purportedly making it the oldest continuously governing body in the world, though evidence supports a much later date. Tynwald is a bicameral or tricameral legislature, comprising the House of Keys (directly elected by universal suffrage with a voting age of 16 years) and the Legislative Council (consisting of indirectly elected and ex-officio members ). These two bodies also meet together in joint session as Tynwald Court. The executive branch of government
1395-525: Is focused on quantitative analysis (which can be ranked), and tends to ignore very small tax havens where data is limited as the haven is used for individual tax avoidance rather than corporate tax avoidance. The last credible broad unranked list of global tax havens is the James Hines 2010 list of 52 tax havens. It is shown below but expanded to 55 to include havens identified in the July 2017 Conduit and Sink OFCs study that were not considered havens in 2010, namely
1488-636: Is found in the Sagas of Icelanders as Mön . The name is probably cognate with the Welsh name of the island of Anglesey , Ynys Môn , usually derived from a Celtic word for 'mountain' (reflected in Welsh mynydd , Breton menez and Scottish Gaelic monadh ), from a Proto-Celtic *moniyos . The name was at least secondarily associated with that of Manannán mac Lir in Irish mythology (corresponding to Welsh Manawydan fab Llŷr ). In
1581-422: Is material, as being labelled a "tax haven" has consequences for a country seeking to develop and trade under bilateral tax treaties. When Ireland was "blacklisted" by G20 member Brazil in 2016, bilateral trade declined. One of the first § Important papers on tax havens , was the 1994 Hines–Rice paper by James R. Hines Jr. It is the most cited paper on tax haven research, even in late 2017, and Hines
1674-522: Is rare, averaging just ten occasions per year. On 10 May 2019 Chief Minister Howard Quayle stated that the Isle of Man Government recognises that a state of emergency exists due to the threat of anthropogenic climate change . The United Kingdom is responsible for the island's defence and ultimately for good governance , and for representing the island in international forums, while the island's own parliament and government have competence over all domestic matters. The island's parliament, Tynwald ,
1767-540: Is relatively flat, consisting mainly of deposits from glacial advances from western Scotland during colder times. There are more recently deposited shingle beaches at the northernmost point, the Point of Ayre . The island has one mountain higher than 600 metres (2,000 ft), Snaefell , with a height of 620 metres (2,034 ft). According to an old saying, from the summit one can see five kingdoms: those of Man, Scotland, England, Ireland, Wales and Heaven . Some versions add
1860-644: Is the Council of Ministers , which is composed of Members of Tynwald (usually Members of the House of Keys, though Members of the Legislative Council may also be appointed as Ministers). It is headed by the Chief Minister . Vice-regal functions of the head of state are performed by a lieutenant governor . In various laws of the United Kingdom, "the United Kingdom" is defined to exclude the Isle of Man. Historically,
1953-437: Is the most cited author on tax haven research. As well as offering insights into tax havens, it took the view that the diversity of countries that become tax havens was so great that detailed definitions were inappropriate. Hines merely noted that tax havens were: "a group of countries with unusually low tax rates". Hines reaffirmed this approach in a 2009 paper with Dhammika Dharmapala . In December 2008, Dharmapala wrote that
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#17331044533282046-563: The Anglo-Saxon King Edwin of Northumbria , who then launched raids from Man into Ireland . How much influence the Northumbrians exerted on Man is unknown, but very few place names on Man are of Old English origin. Vikings arrived at the end of the 8th century. They established Tynwald and introduced many land divisions that still exist. In 1266 King Magnus VI of Norway ceded the islands to Alexander III, King of Scots , in
2139-526: The Cayman Islands , as Google, Facebook and Apple do not appear on Orbis. Even so, Zucman's 2018 list of top 10 havens also matched 9 of the top 10 havens in Hines' 2010 list, but with Ireland as the largest global haven. These lists (Hines 2010, CORPNET 2017 and Zucman 2018), and others, which followed a purely quantitive approach, showed a firm consensus around the largest corporate tax havens. In October 2009,
2232-521: The Commonwealth Games . The Government of the Isle of Man has made calls for a more integrated relationship with the Commonwealth, including more direct representation and enhanced participation in Commonwealth organisations and meetings, including Commonwealth Heads of Government Meetings. The Chief Minister of the Isle of Man has said: "A closer connection with the Commonwealth itself would be
2325-467: The Financial Secrecy Index ), but not on corporate tax haven or traditional tax haven lists, are: Neither the U.S. nor Germany have appeared on any tax haven lists by the main academic leaders in tax haven research, namely James R. Hines Jr. , Dhammika Dharmapala , or Gabriel Zucman . There are no known cases of foreign firms executing tax inversions to the U.S. or Germany for tax purposes,
2418-670: The French Revolutionary Wars and Napoleonic Wars . The 1st Battalion (of 3 companies) was raised in 1793. A 2nd Battalion (of 10 companies) was raised in 1795, and it saw action during the Irish Rebellion of 1798 . The regiment was disbanded in 1802. A third body of Manx Fencibles was raised in 1803 to defend the island during the Napoleonic Wars and to assist the Revenue. It was disbanded in 1811. The Isle of Man Home Guard
2511-502: The Irish Sea , between Great Britain and Ireland . It is recognised as one of the Celtic nations and is the homeland of the Manx people , a Celtic ethnic group. As head of state , Charles III holds the title Lord of Mann and is represented by a Lieutenant Governor . The government of the United Kingdom is responsible for the Isle of Man's military defence and represents it abroad, but
2604-684: The Legislative Council was appointed by the Crown. Since then, democratic government has been gradually extended. During both World Wars, the island was used for the internment of people originating from enemy countries. In recent times, the economy of the island has benefited from regulatory arbitrage in various contexts, such as low taxes. These have attracted wealthy individuals and, together with relatively low government interference, industries such as offshore financial services and more recently gambling. The Isle of Man has designated more than 250 historic sites as registered buildings . The Isle of Man
2697-672: The Lieutenant Governor of the Isle of Man , who is formally responsible for issuing Isle of Man–issued British passports, titled " British passport – Isle of Man " . The powers conferred on the UK Secretary of State by the British Nationality Act 1981 extend to and are exercised in the Isle of Man by the Lieutenant Governor. Isle of Man-issued British passports can presently be issued to any British citizen resident in
2790-803: The NBER listed the key tax havens as: "Ireland, Luxembourg, Netherlands, Switzerland, Singapore, Bermuda and [the] Caribbean havens". (*) Appears as a top ten tax haven in all three lists; 9 major tax havens meet this criterion, Ireland, Singapore, Switzerland and the Netherlands (the Conduit OFCs), and the Cayman Islands, British Virgin Islands, Luxembourg, Hong Kong and Bermuda (the Sink OFCs) . (†) Also appears as one of 5 Conduit OFC (Ireland, Singapore, Switzerland,
2883-403: The Tax Justice Network introduced the Financial Secrecy Index ("FSI") and the term "secrecy jurisdiction", to highlight issues in regard to OECD-compliant countries who have high tax rates and do not appear on academic lists of tax havens, but have transparency issues. The FSI does not assess tax rates or BEPS flows in its calculation; but it is often misinterpreted as a tax haven definition in
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2976-641: The Treaty of Perth . But Scottish rule over Man did not become firmly established until 1275, when the Manx were defeated in the Battle of Ronaldsway , near Castletown . In 1290 King Edward I of England sent Walter de Huntercombe to take possession of Man. It remained in English hands until 1313, when Robert the Bruce took it after besieging Castle Rushen for five weeks. In 1314, it
3069-756: The University College Isle of Man function under the department. Two-thirds of residents of Man are overweight or obese, four in ten are physically inactive, one-quarter are binge drinkers, one in twelve smoke cigarettes and about 15% are in poor general health. Healthcare is provided via a public health scheme by the Department of Health and Social Care for residents and visitors from the UK. The Crime Severity Rate in Man, which largely measures crimes directed against persons or property, remains substantially less than that in
3162-546: The genitive case as Vannin ( IPA: [vanɪnʲ] ), with initial consonant mutation , hence Ellan Vannin , "Island of Mann". The short form used in English is spelled either Mann or Man. The earliest recorded Manx form of the name is Manu or Mana . The Old Irish form of the name is Manau or Mano . Old Welsh records named it as Manaw , also reflected in Manaw Gododdin ,
3255-528: The § Top 10 tax havens lists, namely: Caribbean tax havens (e.g., Bermuda, the British Virgin Islands, and the Cayman Islands), Channel Islands tax havens (e.g. Jersey) and Asian tax havens (e.g., Singapore and Hong Kong). As discussed in § History , the United Kingdom created its first "non-resident company" in 1929, and led the Eurodollar offshore financial centre market post–World War II. Since
3348-430: The 2015 U.S. Congressional Research Service investigation into tax havens, as being restrictive, and enabling Hines' low-tax havens (i.e. to which the first criterion applies), to avoid the OECD definition by improving OECD cooperation (so the second and third criteria do not apply). Thus, the evidence (limited though it undoubtedly is) does not suggest any impact of the OECD initiative on tax-haven activity. [...] Thus,
3441-453: The 9th century, Norsemen established the thalassocratic Kingdom of the Isles , which included the Isle of Man. Magnus III , King of Norway from 1093 to 1103, reigned as King of Man and the Isles between 1099 and 1103. In 1266, King Magnus VI of Norway sold his suzerainty over Mann to King Alexander III of Scotland under the Treaty of Perth . After a period of alternating rule by
3534-698: The European Union's first 2017 list of 17 tax havens; only one location below is on the EU 2017 list. Sovereign states that feature mainly as major corporate tax havens are: Sovereign states or autonomous regions that feature as both major corporate tax havens and major traditional tax havens: Sovereign (including de facto) states that feature mainly as traditional tax havens (but have non-zero tax rates): Sovereign or sub-national states that are very traditional tax havens (i.e. explicit 0% rate of tax) include (fuller list in table opposite): Post–2010 research on tax havens
3627-528: The Isle of Man Parliament , Tynwald , became the first national legislative body in the world to give women the right to vote in a general election, although this excluded married women. The Manx economy is bolstered by its status as a tax haven and offshore banking destination. Insurance and online gambling each generate 17% of the GNP , followed by information and communications technology and banking with 9% each. This status has, however, also brought
3720-525: The Isle of Man and to British citizens who have a qualifying close personal connection to the Isle of Man but are now resident either in the UK or in either one of the two other Crown Dependencies. The Isle of Man was never part of either the EEC or the European Union (EU), nor did it have a special status , and thus it did not take part in the 2016 (Brexit) referendum on the UK's EU membership. However, it
3813-482: The Isle of Man still has a separate international identity. Humans have lived on the island since before 6500 BC. Gaelic cultural influence began in the 5th century AD, when Irish missionaries following the teaching of St. Patrick began settling the island, and the Manx language , a branch of the Goidelic languages , emerged. In 627, King Edwin of Northumbria conquered the Isle of Man along with most of Mercia . In
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3906-674: The Kings of Scotland and England , the island came under the feudal lordship of the English Crown in 1399. The lordship revested in the British Crown in 1765, but the island did not become part of the 18th-century Kingdom of Great Britain , nor of its successors, the United Kingdom of Great Britain and Ireland and the present-day United Kingdom of Great Britain and Northern Ireland . It has always retained its internal self-government. In 1881,
3999-508: The Netherlands, and the United Kingdom), in CORPNET's 2017 research; or (‡) Also appears as a Top 5 Sink OFC (British Virgin Islands, Luxembourg, Hong Kong, Jersey, Bermuda), in CORPNET's 2017 research. (Δ) Identified on the first, and largest, OECD 2000 list of 35 tax havens (the OECD list only contained Trinidad & Tobago by 2017). The strongest consensus amongst academics regarding
4092-645: The OECD initiative cannot be expected to have much impact on corporate uses of tax havens, even if (or when) the initiative is fully implemented In April 2000, the Financial Stability Forum (or FSF) defined the related concept of an offshore financial centre (or OFC), which the IMF adopted in June 2000, producing a list of 46 OFCs . The FSF–IMF definition focused on the BEPS tools havens offer, and on Hines ' observation that
4185-410: The OECD process had removed much of the need to include "bank secrecy" in any definition of a tax haven and that it was now "first and foremost, low or zero corporate tax rates", and this has become the general "financial dictionary" definition of a tax haven. Hines refined his definition in 2016 to incorporate research on § Incentives for tax havens on governance, which is broadly accepted in
4278-599: The OECD's 2000 list. In July 2017, the University of Amsterdam 's CORPNET group ignored any definition of a tax haven and focused on a purely quantitive approach, analysing 98 million global corporate connections on the Orbis database . CORPNET's lists of top five Conduit OFCs , and top five Sink OFCs , matched 9 of the top 10 havens in Hines' 2010 list, only differing in the United Kingdom, which only transformed their tax code in 2009–12 . CORPNET's Conduit and Sink OFCs study split
4371-507: The OECD's new Global Forum on Transparency and Exchange of Information for Tax Purposes , and therefore would not meet Criteria ii and Criteria iii . As the OECD has never listed any of its 35 members as tax havens, Ireland, Luxembourg, the Netherlands, and Switzerland are sometimes defined as the "OECD tax havens". In 2017, only Trinidad & Tobago met the 1998 OECD definition; that definition thus fell into disrepute. (†) The 4th criterion
4464-455: The UK has taken care of its external and defence affairs and retains paramount power to legislate for the Island. However, in 2007, the Isle of Man and the UK signed an agreement that established frameworks for the development of the international identity of the Isle of Man. There is no separate Manx citizenship. Citizenship is covered by UK law, and Manx people are classed as British citizens. There
4557-647: The UK is responsible for its defence and external affairs. There are no independent military forces on the Isle of Man, although HMS Ramsey was affiliated with the town of the same name . From 1938 to 1955, there existed the Manx Regiment of the British Territorial Army (TA), which saw extensive action during the Second World War . During the English Civil War , the 7th Earl of Derby , who
4650-459: The United Kingdom) were cited as the world's leading tax havens. The longest list from Non-governmental, Quantitative research on tax havens is the University of Amsterdam CORPNET July 2017 Conduit and Sink OFCs study, at 29 (5 Conduit OFCs and 25 Sink OFCs). The following are the 20 largest (5 Conduit OFCs and 15 Sink OFCs), which reconcile with other main lists as follows: (*) Appears in as
4743-427: The United Kingdom, Taiwan, and Curaçao. The James Hines 2010 list contains 34 of the original 35 OECD tax havens; and compared with the § Top 10 tax havens and § Top 20 tax havens above, show OECD processes focus on the compliance of tiny havens. (†) Identified as one of the 5 Conduits by CORPNET in 2017; the above list has 5 of the 5. (‡) Identified as one of the largest 24 Sinks by CORPNET in 2017;
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#17331044533284836-527: The United Kingdom, although the rate of violent crime has been increasing in recent years. Most violent crime is associated with the trade in illegal drugs. Tax haven A tax haven is a term, often used pejoratively, to describe a place with very low tax rates for non-domiciled investors , even if the official rates may be higher. In some older definitions, a tax haven also offers financial secrecy . However, while countries with high levels of secrecy but also high rates of taxation, most notably
4929-573: The United States and Germany in the Financial Secrecy Index (FSI) rankings, can be featured in some tax haven lists, they are often omitted from lists for political reasons or through lack of subject matter knowledge. In contrast, countries with lower levels of secrecy but also low "effective" rates of taxation, most notably Ireland in the FSI rankings, appear in most § Tax haven lists . The consensus on effective tax rates has led academics to note that
5022-472: The above list has 23 of the 24 (Guyana missing). (↕) Identified on the European Union's first 2017 list of 17 tax havens; the above list contains 8 of the 17. (Δ) Identified on the first, and the largest, OECD 2000 list of 35 tax havens (the OECD list only contained Trinidad & Tobago by 2017); the above list contains 34 of the 35 (U.S. Virgin Islands missing). U.S. dedicated entities: Major sovereign States which feature on financial secrecy lists (e.g.
5115-489: The academic lexicon. Tax havens are typically small, well-governed states that impose low or zero tax rates on foreign investors. In April 1998, the OECD produced a definition of a tax haven, as meeting "three of four" criteria. It was produced as part of their "Harmful Tax Competition: An Emerging Global Issue" initiative. By 2000, when the OECD published their first list of tax havens, it included no OECD member countries as they were now all considered to have engaged in
5208-530: The accounting flows from BEPS tools are "out-of-proportion" and thus distort the economic statistics of the haven. The FSF–IMF list captured new corporate tax havens, such as the Netherlands, which Hines considered too small in 1994. In April 2007, the IMF used a more quantitative approach to generate a list of 22 major OFCs , and in 2018 listed the eight major OFCs who handle 85% of all flows. From about 2010, tax academics considered OFCs and tax havens to be synonymous terms . In October 2010, Hines published
5301-614: The artificial debt-to-GDP). This can lead to severe credit cycles and/or property/banking crises when international capital flows are repriced. Ireland's Celtic Tiger , and the subsequent financial crisis in 2009–13, is an example. Jersey is another. Research shows § U.S. as the largest beneficiary , and use of tax havens by U.S corporates maximised U.S. exchequer receipts. Historical focus on combating tax havens (e.g. OECD– IMF projects) had been on common standards, transparency and data sharing. The rise of OECD-compliant corporate tax havens, whose BEPS tools were responsible for most of
5394-642: The beginning of farming, and the people began to build megalithic monuments , such as Cashtal yn Ard in Maughold parish , King Orry's Grave in Laxey , Mull Hill near Cregneash and Ballaharra Stones at St John's . There were also the local Ronaldsway and Bann cultures . During the Bronze Age , the size of burial mounds decreased. The people put bodies into stone-lined graves with ornamental containers. The Bronze Age burial mounds survived as long-lasting markers around
5487-454: The case of British Empire–related tax havens, do not have a senior OECD member at their core. Some have suffered setbacks during various OECD initiatives to curb tax havens (e.g. Vanuatu and Samoa). However, others such as Taiwan (for AsiaPAC), and Mauritius (for Africa), have grown materially in the past decades. Taiwan has been described as "Switzerland of Asia", with a focus on secrecy. Although no Emerging market-related tax haven ranks in
5580-546: The countries that received more than one US tax inversion since 1982 (see here ). In addition, six of these major tax havens are in the top 15 GDP-per-capita , and of the four others, three of them, the Caribbean locations, are not included in IMF-World Bank GDP-per-capita tables. In a June 2018 joint IMF report into the effect of BEPS flows on global economic data, eight of the above (excluding Switzerland and
5673-514: The countryside. The ancient Romans knew of the island and called it Insula Manavia . During the four centuries when Rome ruled the Province of Britannia , the Roman military controlled the Irish Sea, providing safe passage of agricultural goods from the productive farms of Anglesey to Roman settlements at the English – Scottish frontier. Only a few Roman artefacts have been found on Man, suggesting
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#17331044533285766-403: The earliest Irish mythological texts, Manannán is a king of the otherworld , but the 9th-century Sanas Cormaic identifies a euhemerised Manannán as "a famous merchant who resided in, and gave name to, the Isle of Man". (Though others suggest it was the Isle that lent its name to the merchant, refer exhibit in "House of Manannan", of Isle of Man Museum, Peel.) Later, a Manannán is recorded as
5859-998: The end of banking secrecy in many jurisdictions including Switzerland following the passing of the US Foreign Account Tax Compliance Act and the adoption of the CRS by most countries, including typical tax havens, a multilateral automatic taxpayer data exchange agreement, initiative of the OCDE . CRS countries require banks and other entities to identify the residence of account holders, beneficial owners of corporate entities and record yearly account balances and communicate such information to local tax agencies, which will report back to tax agencies where account holders or beneficial owners of corporations reside. CRS intends to end offshore financial secrecy and tax evasion giving tax agencies knowledge to tax offshore income and assets. However very large and complex corporations, like multinationals , can still shift profits to corporate tax havens using intricate schemes. Traditional tax havens, like Jersey , are open about zero rates of taxation – as
5952-409: The end of the implementation period, the Isle of Man's relationship with the EU would depend on the agreement reached between the UK and the EU on their future relationship. The Isle of Man is not a member of the Commonwealth of Nations . By virtue of its relationship with the United Kingdom, it takes part in several Commonwealth institutions, including the Commonwealth Parliamentary Association and
6045-460: The establishment of a sovereign republic . The Positive Action Group campaign for three key elements to be introduced into the governance of the island: open accountable government, rigorous control of public finances and a fairer society. Local government on the Isle of Man is based partly on the island's 17 ancient parishes. There are four types of local authorities: Each of these districts has its own body of commissioners. The Isle of Man
6138-415: The financial media, particularly when it lists the US and Germany as major "secrecy jurisdictions". However, many types of tax havens also rank as secrecy jurisdictions. While tax havens are diverse and varied, tax academics sometimes recognise three major "groupings" of tax havens when discussing the history of their development: As discussed in § History , the first recognized tax haven hub
6231-407: The first king of Man in a Manx poem (dated 1504). The island was cut off from the surrounding islands around 8000 BC as sea levels rose following the end of the last ice age. Humans colonised it by travelling by sea some time before 6500 BC . The first occupants were hunter-gatherers and fishermen. Examples of their tools are kept at the Manx Museum . The Neolithic Period marked
6324-403: The five major global Conduit OFCs or any § Top 10 tax havens lists, both Taiwan and Mauritius rank in the top ten global Sink OFCs. Three main types of tax haven lists have been produced to date: Research also highlights proxy indicators , of which the two most prominent are: The post-2010 rise in quantitative techniques of identifying tax havens has resulted in a more stable list of
6417-476: The global flows to tax havens, with three of the five major global Conduit OFCs being European (i.e. the Netherlands, Switzerland, and Ireland). Four European-related tax havens appear in the various notable § Top 10 tax havens lists, namely: the Netherlands, Ireland, Switzerland, and Luxembourg. Many tax havens are former or current dependencies of the United Kingdom and still use the same core legal structures. Six British Empire–related tax havens appear in
6510-412: The government of the island in all respects and had control over its finances but was subject to the approval of the Lord of Mann. In 1765, the Act of Revestment occurred, whereby the feudal rights of the Dukes of Atholl as Lords of Man were purchased and revested into the British Crown. In 1866, the Isle of Man obtained limited home rule, with partly democratic elections to the House of Keys , but
6603-498: The haven has tax treaties; putting them on tax haven lists. According to modern studies, the § Top 10 tax havens include corporate-focused havens like the Netherlands, Singapore, Ireland, and the U.K., while Luxembourg, Hong Kong, the Cayman Islands, Bermuda, the British Virgin Islands, and Switzerland feature as both major traditional tax havens and major corporate tax havens. Corporate tax havens often serve as "conduits" to traditional tax havens. Use of tax havens results in
6696-437: The island of Man itself, the political unit of the Isle of Man includes some nearby small islands: the seasonally inhabited Calf of Man , Chicken Rock (on which stands an unstaffed lighthouse), St Patrick's Isle and St Michael's Isle . The last two of these are connected to the main island by permanent roads/causeways. Ranges of hills in the north and south are separated by a central valley. The northern plain, by contrast,
6789-477: The largest tax havens. Dharmapala notes that as corporate BEPS flows dominate tax haven activity, these are mostly corporate tax havens. Nine of the top ten tax havens in Gabriel Zucman 's June 2018 study also appear in the top ten lists of the two other quantitative studies since 2010. Four of the top five Conduit OFCs are represented; however, the UK only transformed its tax code in 2009–2012. All five of
6882-491: The lost taxes, led to criticism of this approach, versus actual taxes paid. Higher-tax jurisdictions, such as the United States and many member states of the European Union, departed from the OECD BEPS Project in 2017–18 to introduce anti-BEPS tax regimes, targeted raising net taxes paid by corporations in corporate tax havens (e.g. the U.S. Tax Cuts and Jobs Act of 2017 ("TCJA") GILTI–BEAT–FDII tax regimes and move to
6975-525: The name for an ancient district in north Britain along the lower Firth of Forth . In the 1st century AD, Pliny the Elder records it as Monapia or Monabia , and Ptolemy (2nd century) as Monœda ( Mοναοιδα , Monaoida ) or Mοναρινα ( Monarina ), in Koine Greek . Later Latin references have Mevania or Mænavia ( Orosius , 416), and Eubonia or Eumonia by Irish writers. It
7068-529: The problems of money laundering , financial crime and terrorism financing. The Isle of Man is also known for the TT Motorcycle Races, and the Manx cat , a breed with short or no tails. In 2016, UNESCO awarded the Isle of Man biosphere reserve status . The Manx name of the Isle of Man is Ellan Vannin : ellan ( Manx pronunciation: [ɛlʲan] ), a Manx word meaning "island"; Mannin ( IPA: [manɪnʲ] ) appears in
7161-420: The reform of its corporate tax code in 2009–2012, the UK has re-emerged as a major corporate-focused tax haven. Two of the five major global Conduit OFCs are from this grouping (i.e. the U.K. and Singapore). In November 2009, Michael Foot, a former Bank of England official and Bahamas bank inspector, delivered an integrated report on the three British Crown Dependencies (Guernsey, Isle of Man and Jersey), and
7254-583: The same circumstances and restrictions as any other non-EU European relating country to work in the EU. The political and diplomatic impacts of Brexit on the island are still uncertain. The UK confirmed that the Crown Dependencies' positions were included in the Brexit negotiations . The Brexit withdrawal agreement explicitly included the Isle of Man in its territorial scope, but makes no other mention of it. The island's government website stated that after
7347-497: The six Overseas Territories (Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Gibraltar, Turks and Caicos Islands), "to identify the opportunities and challenges as offshore financial centres", for the HM Treasury . As discussed in § History , most of these tax havens date from the late 1960s and effectively copied the structures and services of the above groups. Most of these tax havens are not OECD members, or in
7440-456: The tax revenues are needed to build infrastructure. Over 15% of countries are sometimes labelled tax havens. Tax havens are mostly successful and well-governed economies, and being a haven has brought prosperity. The top 10–15 GDP-per-capita countries, excluding oil and gas exporters, are tax havens. Because of § Inflated GDP-per-capita (due to accounting BEPS flows), havens are prone to over-leverage (international capital misprice
7533-456: The term "tax haven" and " offshore financial centre " are almost synonymous. In reality, many offshore financial centers do not have harmful tax practices and are at the forefront among financial centers regarding AML practices and international tax reporting. Developments over the past decade have substantially reduced the ability for individuals or corporations to use tax havens for tax evasion (illegal non-payment of taxes owed). These include
7626-441: The three steam ferries of Douglas Harbour Ferry Service. Douglas Head is home to three memorials: 54°08′35″N 4°28′00″W / 54.14306°N 4.46667°W / 54.14306; -4.46667 Isle of Man The Isle of Man ( Manx : Mannin [ˈmanɪnʲ] , also Ellan Vannin [ˈɛlʲan ˈvanɪnʲ] ) or Mann ( / m æ n / man ), is a self-governing British Crown Dependency in
7719-501: The top 5 Sink OFCs are represented, although Jersey only appears in the Hines 2010 list. The studies capture the rise of Ireland and Singapore, both major regional headquarters for some of the largest BEPS tool users, Apple , Google and Facebook . In Q1 2015, Apple completed the largest BEPS action in history, when it shifted US$ 300 billion of IP to Ireland, which Nobel-prize economist Paul Krugman called " leprechaun economics ". In September 2018, using TCJA repatriation tax data,
7812-448: The understanding of a tax haven into two classifications: In June 2018, tax academic Gabriel Zucman ( et alia ) published research that also ignored any definition of a tax haven, but estimated the corporate "profit shifting" (i.e. BEPS ), and "enhanced corporate profitability" that Hines and Dharmapala had noted. Zucman pointed out that the CORPNET research under-represented havens associated with US technology firms, like Ireland and
7905-445: The world's largest tax havens is therefore: Ireland, Singapore, Switzerland and the Netherlands (the major Conduit OFCs), and the Cayman Islands, British Virgin Islands, Luxembourg, Hong Kong and Bermuda (the major Sink OFCs), with the United Kingdom (a major Conduit OFC) still in transformation. Of these ten major havens, all except the United Kingdom and the Netherlands featured on the original Hines–Rice 1994 list . The United Kingdom
7998-674: Was also the Lord of Mann, conscripted 10 men from each parish (170 in total) to fight for the Royalist cause; the majority were killed at the Battle of Wigan Lane in 1651. In 1779, the Manx Fencible Corps , a fencible regiment of three companies, was raised; it was disbanded in 1783 at the end of the American War of Independence . Later, the Royal Manx Fencibles was raised at the time of
8091-511: Was included within the EU's customs area , as part of Protocol 3 of the UK's Act of Accession to the Treaty of Rome , allowing Manx goods to be traded throughout the EU without tariffs. It was not part of the EU's internal market and there were still limitations on the movement of capital, services and labour. EU citizens were entitled to travel and reside, but not work, in the island without restriction. British citizens with Manxman status were under
8184-562: Was not a tax haven in 1994, and Hines estimated the Netherlands's effective tax rate in 1994 at over 20%. (Hines identified Ireland as having the lowest effective tax rate at 4%.) Four of these: Ireland, Singapore, Switzerland (3 of the 5 top Conduit OFCs), and Hong Kong (a top 5 Sink OFC), featured in the Hines–Rice 1994 list's 7 major tax havens subcategory; highlighting a lack of progress in curtailing tax havens. In terms of proxy indicators , this list, excluding Canada, contains all seven of
8277-558: Was raised during the Second World War for home defence. In 2015 a multi-capability recruiting and training unit of the British Army Reserve was established in Douglas. There is no citizenship of the Isle of Man as such; Isle of Man residents are entitled to British citizenship and can obtain a full UK British passport or British Isle of Man passport. The Passport Office, Isle of Man, Douglas, accepts and processes applications for
8370-500: Was retaken for the English by John Bacach of Argyll. In 1317, it was retaken for the Scots by Thomas Randolph, 1st Earl of Moray and Lord of the Isle of Man. It was held by the Scots until 1333. For some years thereafter control passed back and forth between the two kingdoms until the English took it for the final time in 1346. The English Crown delegated its rule of the island to a series of lords and magnates. Tynwald passed laws concerning
8463-474: Was the Zurich-Zug-Liechtenstein triangle created in the mid-1920s, later joined by Luxembourg in 1929. Privacy and secrecy were established as an important aspect of European tax havens. However, modern European tax havens also include corporate-focussed tax havens, which maintain higher levels of OECD transparency, such as the Netherlands and Ireland. European tax havens act as an important part of
8556-587: Was the last place in the British Isles to legalise same-sex sexual activity. While it had been legal in England and Wales since 1967, it remained illegal in the Isle of Man until 1992. The Isle of Man's former Chief Minister Howard Quayle issued an "unqualified apology" to gay men convicted of same-sex offences under previous Manx laws. Public education is overseen by the Department of Education, Sport & Culture. Thirty-two primary schools, five secondary schools and
8649-460: Was withdrawn after objections from the new U.S. Bush Administration in 2001, and in the OECD's 2002 report the definition became "two of three criteria". The 1998 OECD definition is most frequently invoked by the "OECD tax havens". However, that definition (as noted above) lost credibility when, in 2017, under its parameters, only Trinidad & Tobago qualified as a tax haven and has since been largely discounted by tax haven academics, including
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