Stark message on tax investigations from US lawyers

Lawyers from the United States have been advising the Island’s financial services sector how to prepare for in-depth tax investigations.

They spoke at a global tax enforcement conference organised by Douglas legal firm Dougherty Quinn at the Villa Marina (3 July).

Its aim is to prepare service providers, banks and investment companies on the tough new powers overseas tax authorities have to demand details of their clients’ accounts.

The Isle of Man has signed a number of tax information exchange agreements with foreign countries and the landmark FATCA accords with the UK and USA came into force this week.

Those measures will help tax authorities trace and punish citizens who hide their wealth abroad, and include a new focus on tax avoidance as well as evasion.

Miriam Fisher is a partner in the Washington office of global law firm Latham & Watkins which co sponsored the event with DQ and US firm Rosenberg Martin Greenberg.

She says compared to other offshore jurisdictions, the Island is already ahead of the game.