manshimajin Posted October 25, 2009 Share Posted October 25, 2009 Slim do I understand from the reference you have linked to that Excise Duty redistribution is also calculated under the formula used for VAT? The model also scores very highly on simplicity and transparency; the data inputs for the calculation are minimal, all that is required are total United Kingdom and Isle of Man net VAT receipts, United Kingdom GNI and Isle of Man GNP, whilst application to other shared duties enhances simplicity and cuts administration costs. Does this mean for example that the excise duty I pay on petrol or drink is handed over to HMRC and an agreed portion returned to the IOMG? In some ways this whole approach seems to be quite cumbersome relative to the IOMG simply agreeing to use the in-force UK VAT and Excise Duty rates and collecting these indirect taxes from all businesses operating here. We could then pay an amount to the UKG for Defence and Foreign Policy matters. Without knowing the figures I assume that we get back more from the UK than is actually raised through economic activity on the Island? Otherwise the Common Purse doesn't make sense for us. If we are now being asked to live within the real amounts we raise rather than getting subsidies from the UK it may force the IOMG to adopt realistic budgetary policies and expense controls. Link to comment Share on other sites More sharing options...
ThankU Posted October 25, 2009 Share Posted October 25, 2009 Slim do I understand from the reference you have linked to that Excise Duty redistribution is also calculated under the formula used for VAT?The model also scores very highly on simplicity and transparency; the data inputs for the calculation are minimal, all that is required are total United Kingdom and Isle of Man net VAT receipts, United Kingdom GNI and Isle of Man GNP, whilst application to other shared duties enhances simplicity and cuts administration costs. Does this mean for example that the excise duty I pay on petrol or drink is handed over to HMRC and an agreed portion returned to the IOMG? Yes. All vat No,s on the IOM should start with GB not IOM Link to comment Share on other sites More sharing options...
Slim Posted October 25, 2009 Share Posted October 25, 2009 M&S is locally incorporated. I think Tesco is as well, not sure about B&Q but locationm of head office is not relevant Am I misunderstanding what locally incorporated means? Tesco, M&S and B&Q are foreign companies John, they're not isle of man companies. I provided the links to the foreign company numbers in the other thread. Yes lots wrong with EU and its lack of democracy at the toop, but we can fight that, will we be bullied, well if we are it won;t be by the UK. WE will have a level playing field re market access. I don't think micro states can afford the EU. Link to comment Share on other sites More sharing options...
pongo Posted October 25, 2009 Share Posted October 25, 2009 @John: Isle of Man Govt FSC Companies Search here to look up IOM registered companies. M&S, Tesco and B&Q are registered here as Foreign companies. Not sure whether that has any implication with respect to your info. All or part of a name is enough. Link to comment Share on other sites More sharing options...
Lost Login Posted October 25, 2009 Share Posted October 25, 2009 M&S is locally incorporated. I think Tesco is as well, not sure about B&Q but locationm of head office is not relevant I think that this has been gone into before but the indications from the Regaistry are that both Tesco & M&S are not locally incorporated but registerd as foreign companies. Either way probably does not make a great deal of difference zero rate tax is not the question or problem because you have to distribute a certain percentage anyway for the balance to be zero rated so the person or entity which gets the dividend pays tax at 18% No strictly true on two counts. Firstly this only applies in respect of the percentage of a company owned by Manx residents. If wholly owned by non residents then there is no requirement to distribute. This makes sense as the non resident is not liable to Manx tax so there is nothing to be gained by ensuring a company distributes. Secondly even if a Manx company wholly owned by IoM residents does not distribute sufficient profits it is still taxed at 0%. It is the shareholder who is taxed on deemed dividend receipts. The taxing of the Manx Company was stopped when they changed from the DPC to ARI Link to comment Share on other sites More sharing options...
Whimsy Posted October 25, 2009 Share Posted October 25, 2009 I was told by someone - who someone under the influence told me was influential - that of your spend in Tesco, 5p in the pound stays on the Island, whereas with Shoprite - 45p in the pound stays on the Island. I was sober at the time, and not at all influential Link to comment Share on other sites More sharing options...
Theodolite Posted October 25, 2009 Share Posted October 25, 2009 I wonder at what stage did the bottomless pit become a black hole Link to comment Share on other sites More sharing options...
Gladys Posted October 25, 2009 Share Posted October 25, 2009 If they are F registered, then that is just them saying to IOMG/public, 'Hey, we are here'. It is just a branch of the English company. Local incorporation is setting up an entirely separate company registered under and governed by IOM law. F registered, I guess, means that they can complete their VAT returns under the central VAT number. Separate incorporation gives the IOM side of the business the opportunity to register here with the local VAT office. Is that not correct? I may be misguided, but it seems to me that the important thing is to accurately determine how much VAT, in total, is paid by IOM residents. Do we have the ability to do that, or do we have some kind of mathematical formula which extrapolates a figure from other data? Link to comment Share on other sites More sharing options...
nickyw Posted October 25, 2009 Author Share Posted October 25, 2009 It's clear that until Treasury explain to the public (or even our MHK's) how the VAT sharing arrangement works there will be confusion as to what the true situation is. I propose that anyone who is concerned at the recent turn of events asks their MHK "Please may we have an explanation of the VAT sharing arrangement?". In the meantime I am boycotting Tesco as I really do not want our Island to look like "Tescoland" across. Tesco is a very big, successful business. At the expense of others. Link to comment Share on other sites More sharing options...
Dave Hedgehog Posted October 25, 2009 Share Posted October 25, 2009 I'll stick with Tesco thanks Link to comment Share on other sites More sharing options...
pongo Posted October 25, 2009 Share Posted October 25, 2009 I was told by someone - who someone under the influence told me was influential - that of your spend in Tesco, 5p in the pound stays on the Island, whereas with Shoprite - 45p in the pound stays on the Island. I was sober at the time, and not at all influential FOAF stories are great but until we have some facts from the govt this is only speculation. Also numbers like that need context. The economic contribution made by any company is about more than where the profits end up. You would also need to know the value to govt of any money which ended up being distributed to shareholders locally. The fact that the money stays on the island may be a red herring. Tony Brown is on MR today. With luck MR will put these exact questions. Link to comment Share on other sites More sharing options...
ThankU Posted October 25, 2009 Share Posted October 25, 2009 http://www.gov.im/lib/docs/treasury/custom...ended2007_n.pdf Link to comment Share on other sites More sharing options...
Albert Tatlock Posted October 25, 2009 Share Posted October 25, 2009 It's clear that until Treasury explain to the public (or even our MHK's) how the VAT sharing arrangement works there will be confusion as to what the true situation is. The calculation was outlined on MRs mandate last week, and I was hoping to type it up on here. Unfortunately, it is obviously so complicated that even the 'listen again' function on Manx Radio has overloaded, blown up, and won't work anymore. It's a simple matter of GNI and GNP ratios...but I would prefer to write up the correct formula - unless someone else has it??? Link to comment Share on other sites More sharing options...
Gladys Posted October 25, 2009 Share Posted October 25, 2009 That's the so-called 'Common Purse Agreement', which has been superceded now? Link to comment Share on other sites More sharing options...
Albert Tatlock Posted October 25, 2009 Share Posted October 25, 2009 http://www.gov.im/lib/docs/treasury/custom...ended2007_n.pdf That's the old one. We need the 2007 version. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.