EU launches formal Paradise probe

MEPs follow UK Treasury approach

Allegations the Isle of Man was used as a base for international tax evasion have triggered a fresh investigation in the European Parliament.

It comes precisely three months after the Paradise Papers claimed to expose widespread exploitation of VAT loopholes facilitated by the Island's aircraft registry.

A committee of MEPs from across the 28 member states, known as TAXE 3, has been tasked with looking into what it calls 'unfinished work' left by the International Consortium of Investigative Journalists.

Among the matters being investigated is the apparent 'circumvention of VAT' on business jets being imported to Europe via the Isle of Man - which has also formed the basis of a separate probe by the UK Treasury.

There will be a reassessment of the EU's notorious tax haven 'blacklist', which the Island was not featured on last year.

While the nation is not specifically named in the committee's remit, it is promised that 'particular attention' will be focused on British Crown Dependencies.