I reported on Sunday news that has reached me that the Isle of Man is to be forced to renegotiate its VAT agreement with the UK, again.
Now comes the reaction from the Isle of Man:
'Little credence' should be given to a keen opponent of the offshore financial centres, as he bids to further 'undermine the Isle of Man'.
That’s the stance of the Isle of Man's Minister for Economic Development, Allan Bell, after Richard Murphy claimed the Manx government would have to renegotiate its VAT sharing agreement with the United Kingdom for the second time in a year.
Mr Murphy, of the Tax Justice Network, has been give credit for the change which saw the Island's VAT receipts cut by £90 million this year and by £140 million a year thereafter.
However, Mr Bell is dismissing his latest claim that another renegotiation is around the corner.
This is about normal for the Isle of Man. But my source has always been right to date. So let’s see, I say.
And it’s odd that they keep giving me credit for forcing the last change — the only reason I think there is any truth in that claim is because they say it.
And let’s also be clear — I’m not for a minute seeking to 'undermine the Isle of Man'. I’m seeking to stop abuse centred in the Isle of Man. That’s something very different.
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The PSG agrees with Mr. Murphy … No one is trying to “undermine the Isle of Man” which is a perfectly splendid place in very many ways.
What is at fault is a scheming government, that amongst other things, refuses to properly regulate the island’s financial services industry — and it is these abuses which should be bought into public forum.
Richard
If I may, can I please make an observation?
Every single comment posted by you which portrays the Isle of Man or Jersey or Guernsey in a negative way is followed by a “hear hear” comment by PSG. I don’t actually have a problem with that.
However, what I do have a problem with is the PSG’s repeated reference to “evidence” of wrongdoing, cover-up etc by the local regulators. If that “evidence” is really “evidence” in the proper sense, I cannot fathom why the PSG does not initiate appropriate legal action through the courts. If the “evidence” is as overwhelming as is portrayed by PSG, then proper recourse via the courts is the obvious way forward, instead of sitting on the sidelines chanting that they have all this “evidence”. Isn’t that what the courts are for? The regulators are not a court of law. They cannot override the law of the land when it comes to commercial disputes. They cannot risk deeming a regulated business to have acted improperly and close them down on the back of it if the courts may then rule otherwise.
Is that not fair comment?
@Rupert
Sure you can make an observation
And my response is that they’re about as repetitious as you
but with more substance to what they say
And substantially greater social value
@Rupert
Of course the Isle of Man financial services regulatory authorities are not a court of law — but this should not prevent them bringing justifiable cases in front of a court of law.
Much as the PSG is unconvinced about certain aspects of Jersey’s government. The Jersey Financial Services Commission does (when it suits them) prosecute miscreants in the financial services industry through the Jersey Royal Court.
And the Royal Court is a highly effective, objective and impartial body.
PSG would suggest that if a person is adamant about banking or investing savings “offshore” than Jersey is definitely the best of the bunch.
Richard
Really? So where’s their substance?
Richard, at least your comments have some depth to them, even I disagree with most of them. Whereas the PSG just drone on about something that they refuse to back up with any evidence (and it’s becoming apparent that this “evidence” probably doesn’t exist).
@Rupert
The substance is clear: I think it is readily apparent from the message “do not put a penny in the Isle of Man”
To misquote Adair Turner, saying that is a socially worthwhile activity
And I strongly suspect that what you do would not meet his criteria
@Richard Murphy
Well, this is interesting — if the UK Government does indeed demand a renegotiation, then I suspect your claim a few weeks back that the new Isle of Man GDP calculation was not in line with the agreement is proved correct. I have seen an alternative explanation put forward on ManxForums — that the UK Government requires its Isle of Man counterpart to use the new calculation methodology but wants it to produce the old result — but this makes little sense to me. In any case, if there is a further renegotiation, then the relationship between the two parties will have become so soured that the best way forward might be abrogation.
@Rupert
I am currently working with Premier Shareholders’ Group to look into their case, and I certainly think they have a legitimate grievance over the way the Fund was marketed and promoted. The big question, and I am carefully considering my response over this, is whether this crossed the line between immoral and illegal — and if so, what redress can now be obtained. However, I do share your opinion that the PSG would be better served by outlining specifics of their grievance here rather than offering generalised imprecations against investing on the Isle of Man, as the former is much more convincing and persuasive. I have privately communicated this opinion to my PSG contact, and we are discussing it.
Richard
I’m talking about the substance of their “evidence”, which is so “overwhelming” that they haven’t bothered to pursue it through the legal system, being the correct and only avenue for getting recourse. Why? You appear to be “taking their side” without considering that point, I suggest primarily because they automatically endorse your attacks on the Crown Dependencies, albeit coming from their own different standpoint.
We’ll agree to differ ad infinitum about “socially worthwhile activity”. Its not even worthy of a debate because neither of us will give any ground on the subject.
@Rupert
You know nothing about either the activities of the PSG or the background to complaints and for the present the PSG will not publish specifics on this blog.
This policy may change, but not as a result of any of your observations.
In the meantime, like it or not, it serves the better good and the public interest to continuie “generalising” on the merits of investing or depositing money on the Isle of Man — which in the wider experience of the PSG is not a prudent option.
Particularly for pensioners.
@Iliam Dhone
The PSG is indebted to you (and others on this blog) for you impartial and calm appraisal of a difficult situation.
The PSG continues to be guided by your considered and valued advice.
Thank you.
@Mr. Murphy
It is unfortunate for some of bloggers that the PSG agrees with almost all your views..
The PSG only posts comments on matters relating to the Isle of Man. Jersey and Guernsey (in which the PSG has special interest) for reason is that it would be excessive and monotonous if it were to post under every one of your publications.
PSG
Thank you for that. I do indeed know nothing about the complaints other than that you attack the jurisdictions and the regulators but don’t seem to be pursuing it legally. I note Iliam’s comments above. I would have thought that it is indeed very wise not to publish specific details in case it does become subject to legal proceedings, if indeed you go down that route. It doesn’t seem to me that you have a prayer of success without going through the proper legal process. Obviously you and Richard Murphy (as publisher) are fully aware of the defamation risks of the comments that you make on this blog in the meantime – entirely your call!
@Rupert
Notwithstanding your incessant bleating the PSG will continue its quest for truth and justice. It would be abrogation of civic responsibility not to give warning of the dangers of investing on the Isle of Man.
PS: Are you licencesd to dispense legal advice?
But which court of law do you imagine that PSG might take a case? If you think the Finance Industry is a little dodgy on the Isle of Man then you will be knocked for six with the Legal ‘Industry’.
Our very own laws….our very own advocates….our very own judges…..
That’s rather strange since you’ve mentioned many times your issues with Premier Funds……
PSG
No, but I do know when I need to engage a lawyer!
@Greg
One has to assume that Rupert is only interested in publishing his own views rather than troubling to read those of others.
@Rupert
Gosh!
@Mr.Murphy
Strange people?
@AlbieR
Thanks. The PSG also has knowledge of these matters.
@New Readers
The PSG considers it in the public interest to warn people about the dangers of investing or depositing money on the Isle of Man.
This warning may appear on websites around the world — from Sweden to Australia.
An entirely unrelated group uses graffiti to post a similar message close to major highways.
The message is:-
NEVER INVEST OR BANK YOUR MONEY ON THE ISLE OF MAN