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New laws to tackle tax evasion by EU savers Telegraph.co.uk - United Kingdom He said: "Our decision today to move to automatic exchange of information under the EU SavingsDirective is a sign that we intend to continue to lead the ... See all stories on this topic New laws to tackle tax evasion by EU savers The Isle of Man plans to change its tax laws to clampdown further on tax evasion by savers resident in European Union member states.   By Mike Goodman Published: 9:19AM BST 01 Jul 2009 Currently they can either pay a withholding tax on the interest credited to their account or to allow exchange of information on their savings with their home tax authorities. The Manx Treasury plans effectively to withdraw the withholding tax option from July 1, 2011, making exchange of information obligatory.   Related Articles Jersey and Guernsey still shine as sun sets on offshore tax havens G20 summit: Blacklisted tax havens face sanctions US and Switzerland to start negotiations over tax secrecy G20 summit: Gordon Brown urges end to tax havens Savings rates bounce back Allan Bell, the Manx Treasury Minister, unveiled the tax plan at an OECD Forum last week. He said: "Our decision today to move to automatic exchange of information under the EU Savings Directive is a sign that we intend to continue to lead the way in international tax co-operation and transparency." During the past nine years, the Isle of Man has developed, signed and ratified Tax Information Exchange Agreements (TIEAs) and Double Taxation Agreements (DTAs) and now has 15 of these OECD standard agreements. It also enforces the European Savings Directive, under which savers resident in EU member states have to pay a withholding tax or opt for exchange of information. Most customers of Manx savings institutions who are EU residents have already opted for exchange of information. The rate of withholding tax, currently 20 per cent, is higher than the tax currently payable in countries such as Cyprus and is set to rise to 35 per cent on July 1, 2011. This rate is likely to be higher than the tax payable on savings in most EU member states, so most savers will be better off opting for exchange of information. Many expatriate Manx savers live outside the EU and will not be affected by these tax rules.