News From Space - Good News For Iom ?

[When Skies Are Grey]

So in short you are slated if you move your business away from the Island and slated if you bring your business to the Island....at least its even handed I suppose!!!

[Tugger]

It's clearly good news for the island - if nothing else we will get the filing fees for the company. It's not THAT unreasonable though to question the EXTENT of the benefit, is it? I can't believe that they ever have any intention of establishing manufacturing facilities here, for instance. I suspect the earlier poster is right, and that it will be used as a financing vehicle. That's still significantly better for the IOM than their establishing a Bermudian company to do it.

[simon]

I can't believe that they ever have any intention of establishing manufacturing facilities here, for instance.

 

They aren't a manufacturing company anyway. They're SES - they own the Astra satellites which Sky TV and others use. They're based in Luxembourg.

[Tugger]

I can't believe that they ever have any intention of establishing manufacturing facilities here, for instance.

 

They aren't a manufacturing company anyway. They're SES - they own the Astra satellites which Sky TV and others use. They're based in Luxembourg.

 

Ah, OK. My only point was that the real substance of their business is likely to remain outside the island (it's only a guess)

[Utah 01]

The news report mentions that SES is opening an office in Atholl Street; that can't come cheap, surely?

[cheesemonster2005]

Your idiocy knows no bounds.

 

Thank you Ans but it's a serious point. A zero rate policy may attract more companies but where's the benefit. Quanitity doesn't necessarily benefit the island. Someone has suggested that only three jobs will be created and suggested that the island is only being used as a postbox address to save costs - this is not what we want. Companies should prove their benefit to the nation rather than just use us...

[mannin]

Thank you Ans but it's a serious point. A zero rate policy may attract more companies but where's the benefit.

 

I know that there are many well informed folks on here, so I’m not gonna bang on about it, but the zero corp is not really what it seems.

 

The Gvt still gains taxation, ask an accountant to explain it (or pay me and I will spend lots of time writing about), but it only really means 0% to acquisition based companies.

 

The treasury will see massive benefits from the new tax regime for 06 and onwards.

[Billy One Mate]

Yes I thought the zero % tax means that 60% of the profits had to be taken out each year by the shareholders and that is when the nasty tax man gets his hands on the loot. So if this is a billion pound buisness the tax windfall could be quiet large.

[mannin]

Yes I thought the zero % tax means that 60% of the profits had to be taken out each year by the shareholders and that is when the nasty tax man gets his hands on the loot. So if this is a billion pound buisness the tax windfall could be quiet large.

 

 

now I know why you have no mates billy.........................

 

 

your an accountant

[cheesemonster2005]

I know that there are many well informed folks on here, so I’m not gonna bang on about it, but the zero corp is not really what it seems.

 

The Gvt still gains taxation, ask an accountant to explain it (or pay me and I will spend lots of time writing about), but it only really means 0% to acquisition based companies.

 

The treasury will see massive benefits from the new tax regime for 06 and onwards.

 

Thank you Mannin. It's not something I've looked into so didn't know the full facts. I'll look into it but am still think that companies who open up on the island should show a commitment to the island and people rather than just being a post box company.

[Gladys]

Cheese

 

Even if it is only a post box company (and you really can't have one of them now with the regulatory regime we have) it will still benefit the economy. Hate to say it, but Manxcrapperbox has got it right.

 

The main thing is that the IOM is seen, internationally, as a useful, credible, legitimate tool at the front edge of financial engineering. The more top notch corporates that we can attract the better for our standing. The important element is being able to provide truly professional services that give added value to any corporate structure and make us win over the cowboy jurisdictions that do still abound.

[Chinahand]

I think this is pretty good news; it increases the Isle of Man's profile in the telecoms industry and highlights our advantages as a stable, lightly, but [hopefully] well-, regulated and taxed environment off shore, but not too off shore from the UK and Europe.

 

What are the Island's core strenghts? As has been mentioned in an other topic our VAT registration makes it much easy to do business in the EU, but our less onerous regulations and flexible tax and corporate laws are attractive to foot-loose companies.

 

My only concern is that this is very much an example of our government deciding the Isle of Man should be in a particular industry and spending quite alot of cash on Satellite Ambassadors etc to push it. Everyone is talking about the clincher being the tax advantages, but does anyone know if any other incentives were offered: grants, credit facilities, tax holidays etc.

 

I understand that the MEA's attempts to get into the telecoms business very rapidly became very nasty and very political with all sorts of vested interests coming out of the woodwork with their pet politician to back them up.

 

As reported so far the deal looks like a real winner for the Island, but its also an example of politicians spending our cash on their pet project; as are movies and internet gambling etc. There have been very few politicians who have been able to accurately pick money making projects.

 

As I'm in China I'll leave you with a quote from S. Mitchell's translation of the Dao De Jing written two and a half thousand years ago by Laozi which roughly sums up my ideas on how politicians should govern:

 

If you want to be a great leader,

you must learn to follow the Tao.

Stop trying to control.

Let go of fixed plans and concepts,

and the world will govern itself.

 

The more prohibitions you have,

the less virtuous people will be.

The more weapons you have,

the less secure people will be.

The more subsidies you have,

the less self-reliant people will be.

 

Therefore the Master says:

I let go of the law,

and people become honest.

I let go of economics,

and people become prosperous.

I let go of religion,

and people become serene.

I let go of all desire for the common good,

and the good becomes common as grass

[Gladys]

Agree with all you say, except the reference to flexible corporate laws. Our company law is based on that of the UK. Although it has been trimmed and tweaked, it is basically the UK companies legislation from the 1920's; not particularly flexible and reflecting the commercial imperatives of almost a century ago.

 

The UK itself is undergoing a fundamental review of its company law and we are currently considering legislation to permit a new corporate vehicle which is intended to provide a more flexible and attractive Manx vehicle to buck the trend of reducing IOM company formations.

 

The current legislation puts in place many bureacratic hurdles which do very little to protect those dealing with a company, but place an adminsitrative burden on the company.

 

For example, the requirement to have two directors protects no-one, but it generates posts which have to be filled. Probably no real burden in the finance sector where two members of staff rather than one are appointed directors to client companies, but for a local small trading company it can be a real burden finding and paying someone to act as the second direcotr with all the obligations and personal liabilites that carries.

[Grumble]

Laozi! What's an Italian footballer doing quoting ancient Chinese proverbs?

[manxchatterbox]

For example, the requirement to have two directors protects no-one, but it generates posts which have to be filled. Probably no real burden in the finance sector where two members of staff rather than one are appointed directors to client companies, but for a local small trading company it can be a real burden finding and paying someone to act as the second direcotr with all the obligations and personal liabilites that carries.

 

an now don't they want to do away with the requirement for having two local directors...it seems like just going back to like non-resident status companies but with a different name...

 

an isn't Luxembourg one of Europe's premier financial centres.. which makes you wonder why a Company based there would want to be placing its business with the IOM... (an if the executives from the Luxembourg end visit the IOM then they wil be looking for somewhere to eat like the Portugese restaurant in the Grund that serves flaming king prawns in garlic butter....yummmm)..has anyone else been there..know what the restaurant is called... anyone from say CMI or Merrill Lynch or anyone else with an office there...