[BBC News] Manx 'should avoid G20 blacklist'

[Newsbot]

The Isle of Man's finance minister believes world leaders at the G20 summit will not blacklist the island as a tax haven.

 

Source : http://news.bbc.co.uk/go/rss/-/1/hi/world/...man/7976787.stm

[bluemonday]

Any chance of ' I'll eat my hat if I'm wrong'?

[nipper]

As has been said before on this forum, perhaps if you say it loud enough and long enough - it will be true. Like what usually happens on the Island eh!

 

As for our Government/Civil Service's crudentials at handling loads of money, well . . .

 

The New Hospital was built "at no cost to the taxpayer" (Tony Brown Chief Minister)

 

IRIS is a good thing and is rather a bargain. It really will work

. . . . . we need an Airport Extension

. . . . . We don't bug police station private rooms on the Isle of Man

. . . . . All those hundreds of £millions spent on the MEA Power Station and stuff is money right well spent. Surely.

 

etc.....

 

And as for being a Tax Haven,

We have a £100,000 tax cap for stinking rich people with loads of dosh who don't like paying taxes in the UK and such places

 

Altogether now for the mantra-like chorus, : "We are not a tax haven . . . We are not a tax haven . . . "

[Moghrey Mie]

We are SO misunderstood.

 

We have low taxes

We have a tax cap for the rich.

We offer a safe pace for your money.

We can help you to avoid tax.

 

BUT we are not a tax haven

[Slim]

We are SO misunderstood.

 

We have low taxes

We have a tax cap for the rich.

We offer a safe pace for your money.

We can help you to avoid tax.

 

BUT we are not a tax haven

 

Same is true of the City of London, is that a tax haven? The island is a competitive tax environment, but there's nothing wrong with that.

[scarbunny]

Why are people posting complaining about the low tax?

 

I case you hadn’t noticed its a good thing, it is the main reason a lot of companies are here and its also good for your pocket!

 

We have decent health care, schools, roads are not bad a lot better than in the UK, no national debt (or at least that was the case).

 

Also we want lots of high worth people on the island, especially when the new VAT rules come into play. So where the super rich may have a tax cap they will also get back a larger amount of VAT for a very small drain on local resources.

[Tempus Fugit]

do you really think logic and facts will overrule rhetoric with these clowns ?, they've pinned their colours (and colors) to the mast to get rid of tax havens

[Knoxville]

Why are people posting complaining about the low tax?

 

I case you hadn’t noticed its a good thing, it is the main reason a lot of companies are here and its also good for your pocket!

 

We have decent health care, schools, roads are not bad a lot better than in the UK, no national debt (or at least that was the case).

 

Also we want lots of high worth people on the island, especially when the new VAT rules come into play. So where the super rich may have a tax cap they will also get back a larger amount of VAT for a very small drain on local resources.

 

Hight lighted - where the fuck do you live?

The roads are shit over here, pots holes all over the place, always having roads dug up and not re-surfaced properly.

 

What new VAT rules are these?

[pongo]

Why are people posting complaining about the low tax?

 

I case you hadn’t noticed its a good thing, it is the main reason a lot of companies are here and its also good for your pocket!

 

We have decent health care, schools, roads are not bad a lot better than in the UK, no national debt (or at least that was the case).

 

Also we want lots of high worth people on the island, especially when the new VAT rules come into play. So where the super rich may have a tax cap they will also get back a larger amount of VAT for a very small drain on local resources.

 

On the downside:

 

- a lack of proper double taxation agreements with other jurisdictions (very different from the deals which have been negotiated to date). This increases costs for some individuals and companies. It creates work for firms of accountants (though not always based here).

 

- a lack of development funding for Isle of Man based companies, and Isle of Man based industrial projects in general - because there is a lack of tax revenue and governmental expertise to anticipate and fund that. Meanwhile Isle of Man based companies cannot apply for EU development grants and may be excluded from joining consortia which are bidding for EU funded projects. This lack of financial support for industry is largely a factor of the island being too small to have an economy which can support these sorts of initiatives. This lack of support for industry puts the island at an economic disadvantage compared to similar sized areas elsewhere - eg an English county.

 

- over - dependence on financial services makes the island particularly economically vulnerable.

 

So not a list of complaints. Rather I am pointing out that there are considerable downsides to running a semi independent economy.

[scarbunny]

Ok so the roads could be better but at least they do work on them.

 

At the minute Customs and Excise collect the VAT on the island and get to keep what they collect, or they send it to the UK and get the same value back so it amounts to the same thing. In the near future this is changing so that we send it back and then the UK Government does some maths works out our average income and gives us back VAT based on that meaning we will end up with less VAT (probably). However if we get one high net worth person over with an income of say £1m a year he then becomes worth the equivalent of 50 people earning £20k but only draining significantly less resources as they will be on private health care private schools ect.

 

So in effect capping the income tax mean we lose out on that revenue but in the long term we will gain.

 

I agree with you Pongo however I feel that the possitives out weigh the negatives for the time being, although if the finacial bubbles does burst then a lack of any indusrty out side of finance will be a huge downfall for us all.

[Knoxville]

Ok so the roads could be better but at least they do work on them.

 

At the minute Customs and Excise collect the VAT on the island and get to keep what they collect, or they send it to the UK and get the same value back so it amounts to the same thing. In the near future this is changing so that we send it back and then the UK Government does some maths works out our average income and gives us back VAT based on that meaning we will end up with less VAT (probably). However if we get one high net worth person over with an income of say £1m a year he then becomes worth the equivalent of 50 people earning £20k but only draining significantly less resources as they will be on private health care private schools ect.

 

So in effect capping the income tax mean we lose out on that revenue but in the long term we will gain.

 

I agree with you Pongo however I feel that the possitives out weigh the negatives for the time being, although if the finacial bubbles does burst then a lack of any indusrty out side of finance will be a huge downfall for us all.

 

So what your saying is there scrapping the reciprocal agreement with the UK, which I find very hard to believe.

[scarbunny]

Why are people posting complaining about the low tax?

 

I case you hadn’t noticed its a good thing, it is the main reason a lot of companies are here and its also good for your pocket!

 

We have decent health care, schools, roads are not bad a lot better than in the UK, no national debt (or at least that was the case).

 

Also we want lots of high worth people on the island, especially when the new VAT rules come into play. So where the super rich may have a tax cap they will also get back a larger amount of VAT for a very small drain on local resources.

 

On the downside:

 

- a lack of proper double taxation agreements with other jurisdictions (very different from the deals which have been negotiated to date). This increases costs for some individuals and companies. It creates work for firms of accountants (though not always based here).

 

- a lack of development funding for Isle of Man based companies, and Isle of Man based industrial projects in general - because there is a lack of tax revenue and governmental expertise to anticipate and fund that. Meanwhile Isle of Man based companies cannot apply for EU development grants and may be excluded from joining consortia which are bidding for EU funded projects. This lack of financial support for industry is largely a factor of the island being too small to have an economy which can support these sorts of initiatives. This lack of support for industry puts the island at an economic disadvantage compared to similar sized areas elsewhere - eg an English county.

 

- over - dependence on financial services makes the island particularly economically vulnerable.

 

So not a list of complaints. Rather I am pointing out that there are considerable downsides to running a semi independent economy.

 

 

Ok so the roads could be better but at least they do work on them.

 

At the minute Customs and Excise collect the VAT on the island and get to keep what they collect, or they send it to the UK and get the same value back so it amounts to the same thing. In the near future this is changing so that we send it back and then the UK Government does some maths works out our average income and gives us back VAT based on that meaning we will end up with less VAT (probably). However if we get one high net worth person over with an income of say £1m a year he then becomes worth the equivalent of 50 people earning £20k but only draining significantly less resources as they will be on private health care private schools ect.

 

So in effect capping the income tax mean we lose out on that revenue but in the long term we will gain.

 

I agree with you Pongo however I feel that the possitives out weigh the negatives for the time being, although if the finacial bubbles does burst then a lack of any indusrty out side of finance will be a huge downfall for us all.

 

So what your saying is there scrapping the reciprocal agreement with the UK, which I find very hard to believe.

 

As hard as it is to belive these are the rules that are suppose to be coming in shortly, I think it is 2010 but typically I can no longer find the article.

[Knoxville]

They wont get rid of it, do you have any idea of the mechanics involved in it.

 

I've heard nothing of this, so its prob just pure hear say.

[piebaps]

They wont get rid of it, do you have any idea of the mechanics involved in it.

 

I've heard nothing of this, so its prob just pure hear say.

 

You need to get out more Knoxville! (Or maybe its me that needs to get out!)

 

http://www.publications.parliament.uk/pa/c...355/355we06.htm

 

http://www.iomtoday.co.im/isle-of-man-busi...TION.2181123.jp

 

These are just a couple of the many articles published about the changes to the VAT sharing arrangements. These changes were made at the behest of the UK Treasury so you can be assured that they won't result in more VAT coming our way! These changes were one of the drivers for the £100k tax cap.

[scarbunny]

They wont get rid of it, do you have any idea of the mechanics involved in it.

 

I've heard nothing of this, so its prob just pure hear say.

 

You need to get out more Knoxville! (Or maybe its me that needs to get out!)

 

http://www.publications.parliament.uk/pa/c...355/355we06.htm

 

http://www.iomtoday.co.im/isle-of-man-busi...TION.2181123.jp

 

These are just a couple of the many articles published about the changes to the VAT sharing arrangements. These changes were made at the behest of the UK Treasury so you can be assured that they won't result in more VAT coming our way! These changes were one of the drivers for the £100k tax cap.

 

 

Thank you for the info piebaps, I was starting to think I had dreamt it.

 

I did hear some other rumours before this happend that the IOM Customs and Excise were going to be taking some of the work load from the UK C&E buy working on the VAT stuff for major companies like BA, but that could have fallen to the way side now.