G7 taxation proposals vs zero-10

[Non-Believer]

8 minutes ago, pongo said:

Perhaps it becomes an opportunity to shift the emphasis and reduce personal taxation. Potentially making it an even better place for the remotely / remotely self-employed to be based.

Simplistically speaking, how do you reduce our already low personal taxation though? Treasury are between a rock and a hard place in this.

Only in the last couple of weeks (reported in Indy editorial) Tynwald discussed the lack of entertainment and opportunity for young people on the Island and agreed that action is needed. There was a call-in on the same subject on Andy Wint's show on MR this week, young people all complaining at the apparent lack of things to do and social life.

We'll have to make the Island more attractive to the young entrepreneur if we're going to keep our own, let alone attract others?

[pongo]

9 minutes ago, Non-Believer said:

Simplistically speaking, how do you reduce our already low personal taxation though?

Personal taxation isn't especially low. Last time I checked I seem to remember that it comes out roughly the same for someone on £50k.

-- happy to be corrected on this if significantly wrong.

Edited July 2, 2021 by pongo

[Max Power]

4 minutes ago, pongo said:

Personal taxation isn't especially low. Last time I checked I seem to remember that it comes out roughly the same for someone on £50k.

-- happy to be corrected on this if significantly wrong.

I think you're right Pongo, I did a calculation a few years ago and there wasn't much in it then.  

[pongo]

16 minutes ago, Non-Believer said:

Only in the last couple of weeks (reported in Indy editorial) Tynwald discussed the lack of entertainment and opportunity for young people on the Island and agreed that action is needed. There was a call-in on the same subject on Andy Wint's show on MR this week, young people all complaining at the apparent lack of things to do and social life.

Maybe. But you cannot really jump start that kind of thing. It's only ever demand-led. It's like the way in which state sponsored popular culture is nearly always a fail.

Also - financially active young people are not calling Andy Wint to express their opinions about anything. 

[Holte End]

Could anybody say, what the difference is between the G7 taxation proposals and The European Parliaments CCCTB proposals ?

To me it looks like the european union has just put it out to a wider audience, bringing in the Americans.

I think a letter will be sent to the Crown Dependencies from GUY VERHOFSTADT just saying "Gotcha".

[Chris C]

4 hours ago, Non-Believer said:

Simplistically speaking, how do you reduce our already low personal taxation though? Treasury are between a rock and a hard place in this.

Raise the personal allowance. 

[Max Power]

5 hours ago, Non-Believer said:

Only in the last couple of weeks (reported in Indy editorial) Tynwald discussed the lack of entertainment and opportunity for young people on the Island and agreed that action is needed. There was a call-in on the same subject on Andy Wint's show on MR this week, young people all complaining at the apparent lack of things to do and social life.

We'll have to make the Island more attractive to the young entrepreneur if we're going to keep our own, let alone attract others?

 

4 hours ago, pongo said:

Maybe. But you cannot really jump start that kind of thing. It's only ever demand-led. It's like the way in which state sponsored popular culture is nearly always a fail.

Also - financially active young people are not calling Andy Wint to express their opinions about anything. 

Yes, all the IOMG need to do to kickstart a lot of investment is to create a full blown University IoM!

The boost to the economy would be enormous, entertainment, night life, sport, student accommodation (a return to guest houses?) services, catering and a vibrant island. 

Once the students return home, we have all of the tourism facilities for summer ready and waiting. Parents visiting etc throughout the year also adds to the tourism boom we would generate.

Maybe we could have lower tuition fees to attract students?  

Generally students are intelligent people and not too troublesome but we would then need a larger police force for the increase in population. This way we get our increase in spending and population without having the downside of building all over the island. It also makes it more feasible for tech businesses to locate here with a ready supply of graduates.   

[Non-Believer]

4 hours ago, pongo said:

Maybe. But you cannot really jump start that kind of thing. It's only ever demand-led. It's like the way in which state sponsored popular culture is nearly always a fail.

Also - financially active young people are not calling Andy Wint to express their opinions about anything. 

The article on the show was expressly for people of school leaving age/Uni candidates to give their views. They may not be very financially active right now but they are the next very active generation; if they hold the opinions they're expressing now then what chance do we have of attracting them back to the Island after they've finished their education and experienced the bright lights?

[pongo]

56 minutes ago, Non-Believer said:

The article on the show was expressly for people of school leaving age/Uni candidates to give their views. They may not be very financially active right now but they are the next very active generation; if they hold the opinions they're expressing now then what chance do we have of attracting them back to the Island after they've finished their education and experienced the bright lights?

Young people in the IOM are not typically calling Manx Radio. Only the elderly and bored 

If you ask people what they think they will find something predictable to say. Voxpop reporting is utterly pointless and dull. Maybe shut down the radio station and spend the money on an ice rink or something?

People on the IOM have probably always moaned that there isn't enough to do. The solution is to spend a few decades away around the world. It's a great place to work from when you are a bit older.

 

Edited July 2, 2021 by pongo

[Non-Believer]

2 minutes ago, pongo said:

Young people in the IOM are not calling Manx Radio. Only the elderly.

The programme article exclusively featured young people of school leaving/Uni entrant age expressing their opinions on entertainment and available social life on-Island. I listened to it. Did you?

[SleepyJoe]

2 hours ago, Chris C said:

Raise the personal allowance. 

& bring back Treasury discretionary grants

[finlo]

I feel sorry for the young ones of today as the nightlife here is utter Shite compared to what we had in the 70's/80's/90's.

Edited July 2, 2021 by finlo

[Phillip Dearden]

9 hours ago, pongo said:

AFAIK - this does not only impact large multinationals. That I think has always been a misunderstanding.

There are two strands to the G7 agreement AFAIK:

1. Concerns large corporations and where their profits are taxed.

2. Sets a minimum rate of corporation tax.

The second point certainly would affect the island. If my understanding of what has been agreed is correct. My understanding is that the minimum rate is exactly that.

The detail remains to be seen but at the moment it looks like two proposals;

1. Profits of large tech and pharma companies to be taxed, to some extent, where they are achieved, and

2. Extra tax in parent jurisdictions in respect of  subsids in low tax areas.

This must have some effect on the IOM but I don't think it is a big part of the economy...but I could be wrong.

 

 

[SleepyJoe]

7 hours ago, Roger Mexico said:

No, here's the full list.  It's basically everyone the US is on speaking terms with, and all the British-related ones are there including the Caymans and BVI as well as the CI etc.  As usual implementation will be the key.

Jersey have added a bit of detail to their announcement

OECD Inclusive Framework announcement (gov.je)

[Flyingfemme]

It’s more complication when what’s needed is more simplification. Simple rules have far fewer loopholes and make planning easier. Constantly moving goalposts benefit nobody but the really big companies and their financial advisors. Taxing one sort of company more than another skews competition and pushes people towards lower taxed enterprises for careers, investment and shareholding.

I think the IOM’s basic idea of encouraging profits to be paid to shareholders  and taxed in their hands is a good one. Individuals are far easier to tax and companies could keep a proportion of their profits (tax free) to reinvest. 
 

They could also get tough on allowing things like interest on loans to buy back shares; that’s not a business function , it’s gaming.

Edited July 3, 2021 by Flyingfemme