steven ! Posted March 17, 2008 Share Posted March 17, 2008 Manx Radio News Could be a threat, but I wonder is Obama aware that one of his countrymen is our new King? They could both come over on Tynwald Day and see that all the Isle of Man really is, is a quaint backwater where we all dress up and do country dancing and wear wigs and funny hats and stockings and drink insipid brew. And carry sticks . Link to comment Share on other sites More sharing options...
triskelion Posted March 18, 2008 Share Posted March 18, 2008 Manx Radio News Could be a threat, but I wonder is Obama aware that one of his countrymen is our new King? They could both come over on Tynwald Day and see that all the Isle of Man really is, is a quaint backwater where we all dress up and do country dancing and wear wigs and funny hats and stockings and drink insipid brew. And carry sticks . Which makes it a quaint backwater compared to where? A city where thousands of people spend their Saturday shouting at footballers? A country where the candidates for national leader have to religious to stand a chance of election? I think you'll find most countries have some kind of weird dancing. Link to comment Share on other sites More sharing options...
House Posted March 18, 2008 Share Posted March 18, 2008 Mr Bell says the Treasury is watching the situation closely, as around 70 per cent of the Island's revenues come from VAT agreement with the United Kingdom. What's all that about then? I thought we made all our cash out of the billions of quid that was deposited in the banks here? And if 70% of our cash actually comes from the VAT agreement with the UK, what's the problem with that then? Either way I hope the Republicans win, even though they're evil, because I don't want the IOM to get fucked with. Link to comment Share on other sites More sharing options...
When Skies Are Grey Posted March 18, 2008 Share Posted March 18, 2008 I think that any new President will have more on their plate what with their own financial scandals and overseas military issues to worry about our little "backwater"....... Link to comment Share on other sites More sharing options...
Amadeus Posted March 18, 2008 Share Posted March 18, 2008 We're doomed! (again...) Link to comment Share on other sites More sharing options...
steven ! Posted March 18, 2008 Author Share Posted March 18, 2008 Manx Radio News Could be a threat, but I wonder is Obama aware that one of his countrymen is our new King? They could both come over on Tynwald Day and see that all the Isle of Man really is, is a quaint backwater where we all dress up and do country dancing and wear wigs and funny hats and stockings and drink insipid brew. And carry sticks . Which makes it a quaint backwater compared to where? A city where thousands of people spend their Saturday shouting at footballers? A country where the candidates for national leader have to religious to stand a chance of election? I think you'll find most countries have some kind of weird dancing. I think you are being over defensive of our beautiful Island again triskelion What I was meaning was that we could pretend that all we really do is those things on Tynwald Day. Then the possible future President of The United Sates and his fellow countryman - our very own King David - wouldn't possibly think we have an extremely wealthy, lucrative and vibrant Finance Industry riding on the back of our favourable Tax Laws that must surely suck an awful lot of money away from the likes of the United States of America and many other places in the World. It's just that there wasn't one of those smilie things for nervous jovial sort of sarcasm. Link to comment Share on other sites More sharing options...
triskelion Posted March 18, 2008 Share Posted March 18, 2008 In retrospect I should have gotten the joke, but in my defence I had only just gotten up. House: The problem with deriving revenue through the VAT sharing agreement is that our tax revenue is therefore tied to growth in the UK economy. So even though the Manx economy can expect to go considerably faster than that of the UK, that won't be wholly reflect in what we get. With the UK's growth expected to be very low, this could potentially have serious reprecussions for Government spending. Or at least that is my understanding of it. Link to comment Share on other sites More sharing options...
When Skies Are Grey Posted March 18, 2008 Share Posted March 18, 2008 In retrospect I should have gotten the joke, but in my defence I had only just gotten up. House: The problem with deriving revenue through the VAT sharing agreement is that our tax revenue is therefore tied to growth in the UK economy. So even though the Manx economy can expect to go considerably faster than that of the UK, that won't be wholly reflect in what we get. With the UK's growth expected to be very low, this could potentially have serious reprecussions for Government spending. Or at least that is my understanding of it. The IOM does have some say in this though in the claw back arrangement between the IOM and UK on reverse charged acquisitions in the IOM. The IOM yachting and the aircraft industries are major utlisiers of this mechanism and therefore have some direct input in to the overall income - so we are to some extent able to control a major part of this income stream. Link to comment Share on other sites More sharing options...
manxman8180 Posted March 18, 2008 Share Posted March 18, 2008 I also believe that the new VAT agreement means we are less reliant on UK growth. Our own GDP ( and how it compares to that of the UK) will play a greater role in how much of a share we get, which does give us slightly more control than before. Hence, the general (albeit quiet) shift in Govenement policy towards buying local. Essentially, the fiscal benefit of spending money internally is greater than ever. And with the largest pot of money announced for capital works ever, the boom may last a little longer yet. Link to comment Share on other sites More sharing options...
Albert Tatlock Posted March 18, 2008 Share Posted March 18, 2008 VAT is generated from companies and from what company paid employees spend from their earnings. If e.g. 30% of island finance sector activities are targeted by Obama, this will result in some companies closing and unemployment going up and therefore less local spending etc. If enough local companies are affected, people will start leaving the island, there will be even less spending and house prices will go down too etc. etc. In the event of him attacking 'tax havens', then unless the activities are replaced by other jobs - so that people can regain that spending power - how can people say we will be alright because of the VAT agreement? That's effectively saying you can make money from nothing isn't it? Link to comment Share on other sites More sharing options...
When Skies Are Grey Posted March 18, 2008 Share Posted March 18, 2008 In the event of him attacking 'tax havens', then unless the activities are replaced by other jobs - so that people can regain that spending power - how can people say we will be alright because of the VAT agreement? That's effectively saying you can make money from nothing isn't it? The VAT recoup on reverse charged assets far outweighs the VAT collected in standard rated domestic supplies. So whilst any downturn in the local economy that made a net VAT contribution to the local VAT pot would be affected, there would still be a net VAT income stream from the UK/IOM agreement on the acquisitions. Link to comment Share on other sites More sharing options...
La_Dolce_Vita Posted March 18, 2008 Share Posted March 18, 2008 I am getting a bit confused here. Does the global economic downturn have anything to do with Obama's opposition to tax havens? Or does the global economic downturn simply mean that it will affect business in the UK and the Isle of Man, therefore, affecting how much the Island gets back in VAT? I think that any new President will have more on their plate what with their own financial scandals and overseas military issues to worry about our little "backwater"....... But it isn't a little backwater. From what I have read on American news sites the US believes that its Treasury it losing billions from tax dodges. It would all seem pretty worrying for the Island is the US is writing up legislation. http://levin.senate.gov/newsroom/release.cfm?id=269479 Link to comment Share on other sites More sharing options...
When Skies Are Grey Posted March 18, 2008 Share Posted March 18, 2008 But it isn't a little backwater. From what I have read on American news sites the US believes that its Treasury it losing billions from tax dodges. It would all seem pretty worrying for the Island is the US is writing up legislation. I assume that he has heard of Delaware then......hypocrite! Link to comment Share on other sites More sharing options...
La_Dolce_Vita Posted March 18, 2008 Share Posted March 18, 2008 But it isn't a little backwater. From what I have read on American news sites the US believes that its Treasury it losing billions from tax dodges. It would all seem pretty worrying for the Island is the US is writing up legislation. I assume that he has heard of Delaware then......hypocrite! Delaware the state? What do you mean? Link to comment Share on other sites More sharing options...
When Skies Are Grey Posted March 18, 2008 Share Posted March 18, 2008 But it isn't a little backwater. From what I have read on American news sites the US believes that its Treasury it losing billions from tax dodges. It would all seem pretty worrying for the Island is the US is writing up legislation. I assume that he has heard of Delaware then......hypocrite! Delaware the state? What do you mean? Delaware is an on-shore state for the incorporation of "offshore companies"....seems somewhat short sighted to be attacking financial centres around the world for offering tax advantages when they have one on their own doorstep.... Link to comment Share on other sites More sharing options...
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