cheesemonster2005 Posted February 18, 2009 Share Posted February 18, 2009 It's time that other governments made it clear that residents or nationals of their country who stash their money offshore should face the full force of the law and lots of prison time. That will put an end to the island's dodgy finance industry pretty quickly. Link to comment Share on other sites More sharing options...
Moghrey Mie Posted February 18, 2009 Share Posted February 18, 2009 The Isle of Man is emerging in quite a few places. Here's recent from the Telegraph (Where is that photo taken?) Do you think they've sussed us out yet? Suspect IOM government arranges to have these 'good stories' planted in the Telegraph Last year they also had supplements almost totally written by their favourite journalists. How can Alan Bell maintain the IOM is not a tax haven i.e. low tax jurisdiction when there is a tax cap on earnings of £100,000? Surely the main purpose of that is to lure people over and avoid paying tax in the UK. Link to comment Share on other sites More sharing options...
Sebrof Posted February 19, 2009 Share Posted February 19, 2009 Bonuses were paid into an offshore trust. Cash was then provided to their spouses as "loans". Amounting to almost £1m in some cases, the cash was often used to pay off mortgages or to buy two or three houses at a time. The traders, from RBS Sempra Metals, have a history of seeking to escape tax or national insurance on their bonuses, a tax tribunal found last year. In the 1990s, traders took payment in jars of platinum sponge, a valuable greyish-black metal preparation used as an engineering catalyst, or in gold bullion. When those devices were blocked by the Revenue, Sempra's finance director, David Tregar, bought a new scheme from an accountant in the Isle of Man tax haven. Its a bog standard employee benefit trust - there's absolutely shit loads of them operating through here; hundreds and hundreds. Its legal so what is the problem? It's "wrong" in that it is a device with no purpose other than the avoidance of tax - therefore justifying the description "tax haven". S Link to comment Share on other sites More sharing options...
Sebrof Posted February 19, 2009 Share Posted February 19, 2009 Bonuses were paid into an offshore trust. Cash was then provided to their spouses as "loans". Amounting to almost £1m in some cases, the cash was often used to pay off mortgages or to buy two or three houses at a time. The traders, from RBS Sempra Metals, have a history of seeking to escape tax or national insurance on their bonuses, a tax tribunal found last year. In the 1990s, traders took payment in jars of platinum sponge, a valuable greyish-black metal preparation used as an engineering catalyst, or in gold bullion. When those devices were blocked by the Revenue, Sempra's finance director, David Tregar, bought a new scheme from an accountant in the Isle of Man tax haven. Its a bog standard employee benefit trust - there's absolutely shit loads of them operating through here; hundreds and hundreds. Its legal so what is the problem? It's "wrong" in that it is a device with no purpose other than the avoidance of tax - therefore justifying the description "tax haven". S Well you'd know being an expert on everything. However actually if you look at EBTs they have been a very proven planning mechanism over the years and tried and tested many times. This is just another challenge that may or may not succeed. It does not get around the fact that there are literally hundreds of them based here in one form or another and its been a staple offshore planning technique going back 15 years or more. HMRC even publish guidance on the subject. I expect better from you, Boredom. You are sounding like Slim. Insults instead of argument. It is COMPLETELY IRRELEVANT that EBTs are a "proven planning mechanism". They are set up here PURELY in order to save tax, and that makes the island a tax haven. S Link to comment Share on other sites More sharing options...
Freggyragh Posted February 19, 2009 Share Posted February 19, 2009 One of the good things to come out of this crash will be the demise of business jargon and the hideous, cretinous verbiage that goes with it. Link to comment Share on other sites More sharing options...
Snaipyr Posted February 19, 2009 Share Posted February 19, 2009 One of the good things to come out of this crash will be the demise of business jargon and the hideous, cretinous verbiage that goes with it. I'd be happy to see the demise of the whole financial sector! I really don't care that we'd all be poorer financially - we'd be richer culturally, ethically and spiritually (and I don't mean the religious stuff). We attract the greedy and corrupted from all over the world and I feel ashamed to be associated with the financial shenanigans that go on here. If everyone involved, directly or indirectly, with the tax evasion/avoidance industry all pissed off tomorrow we might regain some self-respect and real values that have been eroded - and before anyone points out the so-called financial benefits to our infrastructure and 'lifestyles', we wouldn't have needed any new schools, prison, hospital, Iris system, roundabouts, housing estates, runways etc if the bastards weren't here. Link to comment Share on other sites More sharing options...
La_Dolce_Vita Posted February 19, 2009 Share Posted February 19, 2009 I remember you saying you like nostalgia, but that would bring the Island to its knees. What would people do? Fish or farm? If the financial sector collapsed the Island would not be able to sustain the population it has. If it happened over a long period and the financial sector incrementally decreased in size then it wouldn't be so bad, even good. However, if it collapsed it would be a massive catastrophe. Who do you mean when you refer to those directly or indirectly involved? Everyone in the finance sector IS involved in sustaining tax avoidance on the Island whether it is seen as a problem or not. In any case, without the financial sector there won't be a lot of people remaining on the Island to hold that self-respect. I do not particularly like the effects of the finance sector on the Island because of many of its consequences but it is the only thing that keeps the economy really ticking over. Link to comment Share on other sites More sharing options...
GD4ELI Posted February 19, 2009 Share Posted February 19, 2009 It is COMPLETELY IRRELEVANT that EBTs are a "proven planning mechanism". They are set up here PURELY in order to save tax, and that makes the island a tax haven. I don't agree - a tax haven is for those who live there. This scheme is pure tax avoidance. Link to comment Share on other sites More sharing options...
Evil Goblin Posted February 19, 2009 Share Posted February 19, 2009 And just what is wrong with avoiding tax? Link to comment Share on other sites More sharing options...
triskelion Posted February 19, 2009 Share Posted February 19, 2009 It is COMPLETELY IRRELEVANT that EBTs are a "proven planning mechanism". They are set up here PURELY in order to save tax, and that makes the island a tax haven. So if something saves tax, then the place where it takes place is a tax haven? So all airports are tax havens as the duty frees? The UK is a tax haven because it offers ISAs? Every country in the World has structures and exemptions that allow the payment of tax to be avoided or defered, meaning the Sebrof definition of 'tax haven' becomes so universal that it loses all relevance. Link to comment Share on other sites More sharing options...
jonnyrotten Posted February 19, 2009 Share Posted February 19, 2009 I think we're over-complicating a lot of this. It appears that the Labour Government in the UK is bankrupt and needs money. Having ripped off 500 million from KSF without much more than a polite cough from the local administration, Darling thinks he can get more, not just from here, but also Jersey, BVI etc, etc, so he's coming to get it. All the rest is window-dressing. Link to comment Share on other sites More sharing options...
Amadeus Posted February 19, 2009 Share Posted February 19, 2009 ...a tax haven is for those who live there. All I can say is RUN, GD4ELI, RUN!!!! Brown targets Switzerland in global tax haven crackdown ....Clamping down on individuals who avoid tax. It is in this area that he is focusing his attention on Switzerland. One senior British figure said that a lengthy EU campaign to rein in savers who attempt to avoid tax had eventually identified a trail leading to Switzerland. Excellent - let's blame the Swiss! Finally, there's a use for them and we can get on with business as usual. /runs and hides Link to comment Share on other sites More sharing options...
GD4ELI Posted February 19, 2009 Share Posted February 19, 2009 Excellent - let's blame the Swiss! Finally, there's a use for them and we can get on with business as usual. Actually it's very true - Switzerland offers tax deals for millionaires just like the Island, there are a lot who live here because of the special tax arrangements. I'm sure the Island will come under severe pressure from the EU to stop this practice. The recent credit crunchy recession thingy has hit me somewhat, I have hadrly any tax to avoid FWIW tourism this winter here in a major ski resort with excellent snow and sun is dire - very, very dire. Let's all play spot the turits during the peak season... Link to comment Share on other sites More sharing options...
gazza Posted February 19, 2009 Share Posted February 19, 2009 I think we're over-complicating a lot of this. It appears that the Labour Government in the UK is bankrupt and needs money. Having ripped off 500 million from KSF without much more than a polite cough from the local administration, Darling thinks he can get more, not just from here, but also Jersey, BVI etc, etc, so he's coming to get it. All the rest is window-dressing. what he said Link to comment Share on other sites More sharing options...
Chinahand Posted February 19, 2009 Share Posted February 19, 2009 I do think the convergence of opinions on either side of the Atlantic to take action against what they deem to be Tax Havens is worrying. Brown leads Global drive to close down Tax Havens in my mind it's big country bullying, and protectionist. An administration has a right to structure its tax structures as it sees fit - if other countries disagree with this THEY have to enforce capital controls to stop their citizens moving funds to these locations - not bully those they dislike into changing their rules Link to comment Share on other sites More sharing options...
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