In October last year we reported on the Isle of Man's first
Tax Information Exchange Agreement (TIEA) case.
In that case (reported
here), the recipient company wanted to ensure the accuracy and
legitimacy of a request from HMRC to the Isle of Man Tax
Authority.
Challenges
The Court stated that evidence amounting to a "knockout
blow" would be required to resist a request for
disclosure.
In appropriate cases, representations can be made and requests
for clarification put forward. However, it is extremely difficult
to formally challenge a TIEA request, in part due to the limited
information provided to a recipient.
The only routes to challenge a request involve either at a Court
hearing, if the tax authority seeks to enforce a notice, or
alternatively by way of Judicial Review, (Petition of Doleance in
the Isle of Man).
