The new rules for VAT sharing with the Isle of Man have been published.
If I might say so the basis of calculation looks rather oddly like the methodology I have used i.e, tax is split proprtionately in relation to GNI (I used GDP).
Not surprising the new basis reduces the share of the IoM — as I predicted would happen if such logic were used.
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What conclusions do you draw from the new methodology? To me, it appears to prove that (a) the previous formula did indeed include an effective subsidy, as you claimed, but (b) no element of subsidy now remains, let alone the £90 million your provisional calculation suggested.
Iliam
They come to a different answer using a slightly different definition of income
I accept now
I was right there was a subsidy
I’m not arguing it any more
When the facts change I change my mind
Richard