I published Jersey’s nonsensical press release on the EU Code of Conduct yesterday.
It seems only right I do the same for Guernsey. They say:
November, 23rd, 2010, The Policy Council confirms that it has received confirmation that, at its most recent meeting (19th November, 2010), the EU Code of Conduct on Business Taxation (‘Code Group’) agreed with unanimity that the zero/10 corporate tax regimes have harmful effects. It is understood that, whilst the formal assessment process has not technically been concluded, the expectation is that the Crown Dependencies will be required to introduce revised corporate tax regimes.
Although Guernsey’s zero/10 regime has not been subject to review by the Code of Conduct Group the implications of last Friday’s conclusion by the Code Group will need to be thoroughly reviewed and assessed.
Hang on a minute. Jersey said:
The Group considered a paper prepared by Commission officials that was concerned solely with whether the deemed distribution provision and the combined effect of taxation at company and shareholder levels came within the scope of the Code as business taxation.
and
With the exception of that provision, the 0/10 tax structure has not been formally addressed by the Commission or the Code Group. Therefore, with the exception of this anti-avoidance measure, nothing has been conveyed to the Island authorities that would indicate that the present 0/10 tax structure is in conflict with the Code criteria. This is fully in accord with the view expressed by the Island authorities to the Code Group and the Commission.
So Guernsey says for all practical purposes zero / ten is dead and jersey says there’s been a minor technical hiccup.
Who is telling the truth?
Guernsey, of course.
Philip Ozouf makes a fool of himself, again, as a result. You almost feel that Guernsey was saying so, but surely not?
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But still no Public comment from the Isle of Man at this stage……
@SB
Odd that, isn’t it?
Maybe they realise that they haven’t a hope in the light of what’s been said here and in Guernsey
The Isle of Man have made an announcement but it’s a strange one.
They have commented without stating what the findings actually are.
I find it incredible, but not surprising, that they can withhold the inevitable truth from the general public. You would almost think there was an election next year……
“TREASURY Minister Anne Craine MHK says the Isle of Man Government will continue to monitor developments following Friday’s meeting of the EU Code of Conduct Group which is considering aspects of the Island’s zero-ten business taxation system: principally how the attribution regime for individuals (‘ARI’) interacts with it.
The Minister commented:
‘This is an important matter for the Isle of Man and we are gathering further information so that we can gain a clear and full understanding of any concerns raised on what are quite complex and technical issues. We would expect that the views of the EU Code of Conduct Group will be explained in detail so that we can consider them carefully before determining what course of action, if any, to take.’
The process was continuing, said Mrs Craine. She understood the next stage would be for the Group to report to the EU Council of Finance Ministers (‘ECOFIN’), probably in December, on its work to date including consideration of aspects of the Isle of Man’s business taxation system.”
@PJM
That’s straightforward denial of the truth
They know they’ve failed
Game over
And I know they’ve failed on three counts
That doesn’t need explanation
That says start again
Below is a quote taken form the IoM Gov guidance notes of the Attribution Regime for Individuals. How can this not be in the remit of the CCBT?
“Resident individuals with an interest in a relevant company will be charged to income tax on their share of the attributed profits from that company. This will, in essence, remove the corporate veil for income tax purposes as individuals will be taxed directly as if they had received the income attributable to their share of the annual profits of a relevant company. This is known as the attributed income.”
As I’ve said before Richard, the IOM Government will finish the offshore industry by it’s own incompetence.
They should have been planning for this for years. When concerns were raised over the DPC version of 0/10 and it was amended to ARI, it was obvious to everyone that nothing had materially changed. They must have known this day would come.
My opinion is the Isle of Man is about to face the perfect storm….0/10, EUSTD, VAT renegotiation. How this government deals with these issues is critical.
With the present lot of MHK’s and the FSC running the show, I am not hopeful for the future!
[…] This is blatantly misleading. Usefully Guernsey has said so. […]
[…] This is blatantly misleading. Usefully Guernsey has said so. […]
@Tax Chimp
It is
It always was
But the financial services industry in the Isle of Man believed they could cheat
And they told the government to do their bidding
And that’s what happened
Will you ever get it right Richard and I feel sorry for some of the fools that listen to you……
“EUROPE’S response to the zero-ten tax package is ‘very good news’ for the future of the finance industry, according to the tax partner at major accountancy firm KPMG Channel Islands
John Riva said he was very pleased with the outcome of the meeting last week at which the EU Code of Conduct group on tax matters discussed zero-ten.
Mr Riva said his assessment was that there was a ‘tacit’ acceptance of the zero-ten regime.
‘It would appear we will be able to maintain a zero per cent and a ten per cent rate and that will give us certainty,’ he said.
However, he said that the code group had decided that a process known as ‘deemed distribution’ of profits to shareholders was a business tax rather than a personal tax.”
Article posted on 25th November, 2010 – 3.00pm
[…] already compared this with Jersey’s official response but now KPMG have moved response in Jersey into the world of fantasy. […]
@Jamie
see http://www.taxresearch.org.uk/Blog/2010/11/25/kpmg-jersey-living-on-another-planet/
[…] already compared this with Jersey’s official response but now KPMG have moved response in Jersey into the world of fantasy. […]
http://www.channelonline.tv/channelonline_guernseynews/displayarticle.asp?id=492001
All joking aside but funny how Guernsey continues to grow though eh Richard?
And Jersey now has a website in Mandarin!!!
Told you we are moving forward and not going bankrupt like you have been mumbling.
http://www.jerseyfinance.hk/
@Jamie
“growing again”
After significant falls
get your facts right