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Observer Article On The Isle Of Man


Cronky

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Go back to the original press release and you find it's more pseudo fact reporting from the Tax Justice Network. They pick up on ANY negative publicity and try to spin it against any tax haven. These are the same guys who picked up on AA Gill's tongue-in-cheek criticism of the Isle of Man in his restaurant review and tried to use it as "proof" of the Island's dodgy tax haven status.

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Surely whether the IOM applies VAT or not is a matter for us as a self governing nation. We don't have to charge VAT and other jurisdictions like the Channel Islands have historically made the decision not to.

 

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.

 

More Gaurdian generated claptrap.

 

I may be wrong but I don't think the Channel Islands pay a defence contribution to the UK, either. They used to before WW2 but felt that they did not get their money's worth on account of not being defended when the Germans invaded, and so decided not to pay anymore.

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As far as defence is concerned, it is probably more in the interests of the UK to provide some form of defence. The Island may make a useful staging post for an attack on the North of England, so perhaps we should be receiving some form of lease payment? Believe you and me, if the day ever came the UK would just march in here no matter what!

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  • 2 months later...
Unless the situation has changed recently they pay for items in lieu of defence contributions, in Guernsey's case they maintain the Alderney harbour (which was the Admiralty's responsibility) and in Jersey's they fund a TA unit.

 

As a new member of this forum (and a Channel Islands native), may I say that is about right?

 

Historically the UK has no right to tax us and we have have twice resisted attempts to do do in the last century.

 

The first occasion, in the 1920's was a demand for the so-called Imperial Contribution. After much internal debate a one-off payment was offered, to which we never had a reply.

 

The second was the Defence Contribution which was settled as Viking Raider stated, apparently amicably, by us taking over some expenditure on the local scene.

 

But back to the VAT Common Purse which is of some interest to us. We hear that the agreement with the UK has been re-negotiated recently, but the details are scant. What do you all know?

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