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Voluntary Tax Paying


manxchatterbox

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Countries have been doing "tax deals" with the wealthy for a long time ... it does make you wonder about the "scroungers" who cost the state so much as against the wealthy with access to advice that allows them to avoid taxes, apparently costing huge millions each year!

 

 

The new Manx cap on tax is actually because of this sort of thing.

 

No need to do deals, no accusations of under the counter treatment, nothing underhand - if you fit the bill give us a hundred grand and thats it.

 

What could be fairer?

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Don't the new IOM personal Income Tax rules mean that if you are IOM tax resident and have an income from assets of say a few hundred million then the maximum you will pay is £100,000???

 

So, if you have an income of a few hundred million (say at least £100) then you should be expecting a gross income return on capital of say at least 8% (argueable point) = £8m per 100m.

 

So, if you have an income of £8m then at an IOM income tax rate of 18% your tax bill would be say £1,440m per £100m.

 

So..if you could would you try to "cut a deal" to reduce the amount you currently owe before the introduction of the new capped rules by making a "large" donation by say firstly approaching the Treasury Minister to see where the land lies and where a high profile donation would be gratefully received??

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Chinahand:-"The only example I know about in any detail is the US tax system where the top 5% still pay something like 40% of the net tax reciepts and that is after all the avoidance schemes the accountants cook up!"

 

Isn't the UK Govt moving towards the US IR tax system.... where if you are a US National and Passport holder you are liable to US tax (until you renounce citizenship and return your passport) no matter where in the world you live for whatever amount of time....

 

here we just seem to be saying your only liable to IOM tax on income receivable in the IOM...surely we should be saying its on your world-wide income and that you must be truly IOM resident and an |OM passport holder having passed the new IOM Citizenship "test".. not for people who just buy property here and have use of it it and make out they are IOM resident (as can be seen from all the apartments/properties that have been purchased or are held as as "investmenst" and which remain empty ...

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Countries have been doing "tax deals" with the wealthy for a long time ... it does make you wonder about the "scroungers" who cost the state so much as against the wealthy with access to advice that allows them to avoid taxes, apparently costing huge millions each year!

 

 

The new Manx cap on tax is actually because of this sort of thing.

 

No need to do deals, no accusations of under the counter treatment, nothing underhand - if you fit the bill give us a hundred grand and thats it.

 

What could be fairer?

I don't have a problem with the Manx personal tax cap, tax deals or even tax planning (the more robust term for avoidance). To a certain extent taxation can be viewed as a kind of game where the loopholes are expected to be exploited (I think there is case law to support this, it may be outdated now, but that nevertheless, was the view). In a way, its all fine and dandy between sophisticated economies.

 

But as for the emerging and developing economies, I'm really not too sure. Creators of wealth, understandably, want to protect that wealth but the effect is to suck assets out of the country, whose usual response is a somewhat sledgehammer and knee-jerk approach, resulting in more assets (well, I really mean money) being moved out so the natural resources and assets of the country do not benefit its citizens. Then add to that, corruption, and you have a right bugger's muddle.

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