Ireland has signed two tax co-operation agreements with the Isle of Man.

One of the agreements covers the exchange of tax information, and will allow Revenue to ask for information relevant to an Irish tax investigation.

The other agreement will give relief from double taxation to some individuals and set up an agreed procedure for calculating company profits.

Finance Minister Brian Cowen and Isle of Man Treasury Minister Allan Bell signed the agreement in Dublin today.

'These agreements draw to a close a period during which the Irish Government had concerns that its citizens and businesses might abuse the Isle of Man's financial services and evade taxes at home,' said Mr Bell.

He said the agreement would significantly strengthen the island's business and economic ties with Ireland.

In 2002, the OECD developed principles on transparency of exchange of information on tax matters. Since then, its members, including Ireland, have been in talks with other financial centres such as Jersey, Cayman Islands and the British Virgin Islands.