Observer Article On The Isle Of Man

[Cronky]

Latest London gossip on the Isle of Man

 

Here

[Gladys]

Having got the population wrong then the rest of the article has to be called into question.

[Addie]

and that there new fangled 'common pure agreement' is a new one to me fellas.

[Last Ten]

I agree with Gladys, if they cannot get the population right, how on earth can we believe all the other crap that they have wrote.

[jim]

Do we still birch people and disrespect those queer chaps?

[Declan]

Do we still birch people and disrespect those queer chaps?

 

Only as part of a loving and consenual relationship.

[Theodolite]

It's a little too easy to pick up on an error in the first paragraph and allow that to provide reason to disparage the rest of the article.

 

There has to come a point when Westminster tells the Island "you are taking the piss and our money" and they do something about it. I'm not quite sure what though. Perhaps we should ever continue sticking two fingers up to 'em.

[The Old Git]

There has to come a point when Westminster tells the Island "you are taking the piss and our money" and they do something about it.

 

How is it their money? It's the sales tax from local, IOM sales in the first place. We could come out of the common purse and VAT and have our own local sales tax, but that would mean sustoms between here and the UK, and more work for businesses, etc.

 

As for defense, we don't have our own army so we pay the UK for defense. When's the last time they defended us? Who is going to invade us anyway?

 

The article is a badly written hatchet job from a Leftie newspaper

[VikingRaider]

How is it their money? It's the sales tax from local, IOM sales in the first place.

 

Er not exactly ... I think the point being made is that Manx companies registered for VAT can reclaim all their input tax which will include a whole heap of stuff from across. Therefore the amount the IOM hands over to the UK is less than the amount being reclaimed here from UK spending.

[The Old Git]

Er not exactly ... I think the point being made is that Manx companies registered for VAT can reclaim all their input tax which will include a whole heap of stuff from across. Therefore the amount the IOM hands over to the UK is less than the amount being reclaimed here from UK spending.

 

Sorry, I don't quite follow that point

 

I do a VAT return every quarter and I pay over the difference between my outputs and inputs, same as every other Manx and UK company. How does that disadvantage the UK and give advantage to the IOM?

[tucker]

How is it their money? It's the sales tax from local, IOM sales in the first place.

 

Er not exactly ... I think the point being made is that Manx companies registered for VAT can reclaim all their input tax which will include a whole heap of stuff from across. Therefore the amount the IOM hands over to the UK is less than the amount being reclaimed here from UK spending.

 

The Isle of Man is not part of the UK but is an associate member of the EU therefore Manx companies should NOT be paying VAT in the UK to start with .

[Alias]

Furthermore, the defence costs it pays to the UK at £32 per head are a fraction of those paid by mainland taxpayers, whose contribution averages £528 per head

 

That doesn't seem that odd to me.. we're paying for protection against invasion, we don't get to call any shots in wars or where our money goes. They pay for wars that the UK government thinks are beneficial to the UK.

[The Old Git]

Therefore currently we VOLUNTARILY collect VAT and VOLUNTARILY share a slice of what we take back to the UK. It would seem that the UK is the net winner because if we were like the Channel Islands they'd get absolutely bugger all from us rather than £500m plus a year.

 

To be fair, I think what we pay over to the UK in VAT receipts we get back in full

 

http://en.wikipedia.org/wiki/Common_Purse_agreement

 

In addition, this means that VAT must be charged on Mann at the same rate as in the UK, and all VAT receipts are paid to the UK Treasury (but then repaid to the Manx Treasury through this agreement), but the agreement is generally accepted as being advantageous to the Isle of Man.

[When Skies Are Grey]

The VAT position is advanageous in favour of the Isle of Man...there is a provision for recoup of VAT on reverse charged acquisitions...to come of this agreement would be foolish in the extreme.

[Tugger]

The people who I know are knowledgeable about this topic seem to be unanimously of the view that we benefit from the CPA - i.e. it results in a transfer of money from the UK to the IOM. I have no idea whether the transfer is on the scale suggested by this bloke at Tax Research though. As mentioned above, his numbers are shaky on the population so why expect them to be up to snuff on the VAT