Island approves tax treaty

The Isle of Man's become one of the first countries to ratify a new international treaty about tax avoidance by multinationals.

So far, only Austria and the Island have finalised the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.

The deal is designed to stop large companies avoiding tax by shifting profits between countries.

Treasury Minister Alf Cannan says it's evidence of the Island's proactive approach to tax avoidance and evasion.

The news comes as the Island comes under scrutiny from the world's media about tax avoidance.