Isle of Man halts tax co-operation with Russia over Ukraine invasion

The Manx government shares certain tax information under an international convention

David Kneale Douglas — The Manx government shares certain tax information under an international convention

The Isle of Man government has suspended tax co-operation with Russia as a result of the ongoing invasion of Ukraine.

The island exchanges relevant tax information, relating to assessment and collection, with the country.

Treasury Minister David Ashford said it would be "wrong" to do something which could benefit Russia's economy while sanctions were in place.

It brings the island into line with the steps taken by the UK government.

Under the Convention on Mutual Administrative Assistance in Tax Matters, Manx authorities have a legal basis on which to exchange tax information with Moscow.

Mr Ashford said: "As a consequence of its military activity in Ukraine, the Isle of Man will not assist Russia in any way."

He reiterated that the island was a "consistent and strong supporter of international information exchange" to combat tax evasion.

However, it would "be wrong to provide information to Russia that could be used for its economic benefit at a time when the Island has imposed economic sanctions," he added.

It is the latest step aimed at putting pressure on the Russian authorities following the freezing of assets, the removal of several jets and yachts from the island's registries, and the banning of the country's aircraft from Manx airspace.