On August 2 the Embassy of Japan in London received notification from the Government of the Isle of Man, informing the completion of its internal procedures necessary for the entry into force of “the Agreement between the Government of Japan and the Government of the Isle of Man for the Exchange of Information Relating to Tax Matters (Tax Information Exchange Agreement between the Government of Japan and the Government of the Isle of Man)” signed on June 21 2011. The Government of Japan has already sent its notification for the same effect to the Government of the Isle of Man. Accordingly, this Agreement will enter into force on September 1 2011.
The Agreement provides for a detailed mechanism for the exchange of tax information, including local government taxes, with a view to preventing cross-border fiscal evasion and tax avoidance.
(taken from Ministry of Foreign Affairs press release, our emphasis where added)
Tax Information Exchange Agreements are a legal instrument to promote international co-operation in order to avoid harmful tax practices or evasion and were originally developed by the OECD Global Forum Working Group on Effective Exchange of Information, of which the Isle of Man was a member. The Isle of Man Government press release can be viewed here.
The Agreement can be downloaded from the Isle of Man Government website (PDF).
A similar agreement is currently under discussion between Japan and the Crown Dependency of Jersey.
