Ce N'est Pas Un Tax Haven

[Moghrey Mie]

On Manx Radio today Allan Bell, Bill Henderson and Dominic Delaney were affronted that the UK media are calling the IOM a tax haven.

 

The definition on Google is 'a place where certain taxes are levied at a low rate or not at all.'

 

Doesn't that describe the tax rates in the IOM eg low personal taxes and zero-rated for companies?

[Gladys]

I hope you listened to the whole programme, because France and Germany have indicated that they are going to get tough on offshores and, apparently, specifically excluded the IOM as a well regulated offshore jurisdiction. I thought your French title alluded to that.

 

But in answer to your question, yes, we are a tax haven when examined against that definition. However, just as caviar is just fish roe, like any other; so there has to be a qualitative element. Have to say though, I don't see the odure so long as we are not a 'tax evaders'' or 'money launderers'' haven.

[Skeddan]

I hope you listened to the whole programme, because France and Germany have indicated that they are going to get tough on offshores and, apparently, specifically excluded the IOM as a well regulated offshore jurisdiction.

What should the response be to this? And what would make IoM a 'well regulated offshore jurisdiction' in their books?

[Gladys]

Skeddan, in the programme they referred to the exclusion of IOM by France and Germany from their hit list as it was a well-regulated jurisdiction. If the report was accurate, then the job is done.

[pongo]

The IOM Govt Treasury has been doing a tremendous job of explaining the island to the treasury departments of other govts and negotiating towards double taxation agreements etc. Whatever ends up happening long term there can be little doubts that they have quietly and carefully worked very hard towards normalizing the island's relationships internationally and all that jazz.

[%age]

. . . I don't see the odure so long as we are not a 'tax evaders'' or 'money launderers'' haven.

 

According to a caller on the Mannin Line today, Jon Snow's assessment of our Isle was possibly justified - a $195,000,000 money laundering case pending?

[Gladys]

I didn't hear that and would want more detail before commenting. However, is it a case against the IOM, or does it involve the IOM in the chain? Any money laundering of USD involves banks in the US, so are they complicit in money laundering? Any jurisdiction handling money can become involved in laundering and money launderers are ever vigilant and ingenious in finding new ways of laundering; the question is whether the regulation stands up to international standards. I doubt that there are many in the IOM finance sector that would knowingly become involved in money laundering, the trick is identifying it to steer clear.

 

It has to be said that the IOM's financial business is high risk, it cannot be anything else.

[Skeddan]

Skeddan, in the programme they referred to the exclusion of IOM by France and Germany from their hit list as it was a well-regulated jurisdiction. If the report was accurate, then the job is done.

Silly me - I misread - I thought they specifically excluded IoM from what they considered as well-regulated offshores.

 

If that's the case then that's an achievement.

 

Is there a term which reflects this status of well-regulated offshore tax haven? If not wouldn't it be good marketing to find something to distinguish itself. 'Finance jurisdiction' or the like might sound less like a dodgy tax dodging place. I can see why they'd argue IoM isn't a tax haven - because that gives most people the wrong impression, but it's no good unless you say what it should be called instead. 'Ce N'est pas Un Tax Haven' is a bit of a mouthful.

[%age]

I'd be interested to hear more details too.

 

20081027_Mannin_Line_clip1.mp3

 

There was also the recent case of bribes concerning a former government official in Pakistan (or as the Manx Court papers had it written Parkison )

[John Wright]

WE are certainly not a tax haven and certainly not a low tax area when you look at most taxes.

 

residents have a lowish direct tax regime. There are no capital taxes and some enterprises are zero rated

 

we pay 11% employment tax on all wages

 

we pay 9% employment tax on most wages

 

we pay income tax at between 10% and 18%

 

we pay sales tax at 5% and 17.5%

 

we pay fuel and alcohol duties at the highest in the western world

 

If you compare our taxes with EU countries more than 25% have a lower maximum income tax, the same proportion, not necessarily the same countries, have better corporate tax regimes

 

WE are mid range on VAT

 

Socail charges and pension charges (employment tax or N I ) are on a par with the average

 

Petrol and alcohol duties are higher than everywhere

 

WE exchange information with homem authorities about bank interest so investors shold declare it, we also have a with holding tax

 

We are a financial serveices centre

[manshimajin]

WE are certainly not a tax haven and certainly not a low tax area when you look at most taxes.

I would add that we are taxed on worldwide income not on amounts remitted to the IOM. This contrast with Ireland for example which taxes non-domiciled persons on a remittance basis only.

[Tugger]

I honestly think that a lot of the improved perception of the island is down to Malcolm Couch, and his pursuit of TIEAs