Canada – IOM TIEA without records its just worthless paper!

You would think at first glance that the Canadian Broadcasting Corporation (CBC) allegations about document shredding in relation to tax schemes beneficial run in the Isle of Man that benefited well heeled Canadians are a major concern and embarrassment to the parties mentioned.
However the most embarrassing issue as far as we can make out is that the events if they are as portrayed by CBC make a complete mockery of the Manx government and Treasury’s much vaunted policy of striking Tax Information Exchange Agreements (TIEAs) with other countries.
The Manx TIEAs are as far as we can ascertain based on OECD best practice which includes guidance on record-keeping.
Ironically as far as we can ascertain the OECD set the framework for record-keeping at a meeting of the body in the 1990s in Ottawa.
The Isle of Man – Canada TIEA was signed in 2011 which was a year before the events to which CBC has alluded.
Article 1 of the IOM/Canada TIEA specifically says:
“4. The requested Party shall use its best endeavours to ensure that the effective exchange of information is not ‘unduly prevented’ (my emphasis) or delayed”.
Article 3 says;
“(e) “information” means any fact, statement, document or record in any form whatever;”
This seems to imply that records pertinent to any potential TIEA partner and in this case Canada should be maintained.
If events have transpired as alleged then hard pressed Canadian tax payers who have seen their Treasury lose millions of dollars over several decades via the operation of these offshore tax avoidance schemes might well be asking why the government of Canada is going round the world signing ‘worthless’ agreements with tax havens like the Isle of Man!
Related links:
Public Relations Officer Mannin Branch
Issued by: The Mannin branch of the Celtic League.

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