Isle of Man Today reports:
CHIEF Minister Tony Brown has warned [that] .. the cash-strapped UK is putting pressure on the Manx Government to revise the Island's VAT sharing arrangements.It is feared that between £50 million and £100 million of government revenue per year could be in jeopardy under any move to tighten the revenue sharing arrangements under the Customs agreement between the two countries.Tynwald members have been invited to a special briefing on economic issues of 'considerable importance to the Island' tomorrow (Wednesday) morning.
The Manx Government's current net revenue spending is £572 million.
With the UK public finances deteriorating rapidly, Gordon Brown's administration is anxious to find new sources of tax revenue.
It is understood that one area coming under pressure from the UK is the Customs agreement with the Island, which currently provides more than half — over £300 million — of the Manx Government's income.
Under the terms of the deal, the UK could give two years' notice to terminate the agreement.
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It must be a rare day that you and Terry Le Sueur see the same headline as good news!
There is panic setting in on the Isle of Man. The Treasury Minister is running all over the world to try to drum up support for a crumbling offshore jurisdiction – Washington Congress, World Bank meeting Istanbul, IMF, Commonwealth treasury ministers meeting Cyprus, etc… he dare not admit that the Kaupthing depositors’ campaign DONT BANK ON THE ISLE OF MAN is taking its toll.
The IoM has a budget surplus but it is morally bankrupt and http://www.secrecyjurisdictions.com has exposed its sham at being transparent. The good times of economic expansion through the tax haven culture are numbered. Its inability to vouchsafe deposits following the financial tsunami of 2008 has hugely damaged the island’s reputation as a safe placeto put one’s life savings. Even The Times says ‘stear clear of the Isle of Man’ as top economists forecast its doom
Jim
http://ksfiom-blog.blogspot.com
Some months ago, while arguing that no subsidy existed from the UK to the Isle of Man, I stated that if there were a subsidy, then we could expect to see the Common Purse Agreement renegotiated or suspended. It now appears that that could be the case.
However, even if that is so, I think this turn of events undermines rather than reinforces your claim that any subsidy amounts to some £230 million a year. What sense would it make for a UK government in dire financial straits to cut any subsidy from £230 million to between £130 million and £180 million? Why not simply discontinue it altogether? And if the VAT sharing system is so disadvantageous to the UK, why was the notice period extended from six months to two years a couple of years ago?
Of course, there is another possibility. The Common Purse Agreement currently takes into account the relative GDPs per capita of the two states, with the Isle of Man presently 22% ahead. Were the UK Government’s proposed amendment to exclude this consideration and allocate at parity upon relative populations, then this would lead to a reduction in the island’s income of approximately £54 million, which seems to tally with the figures given in Isle of Man Today’s vague report.
Whatever, it will certainly create a significant black hole in the island’s finances, though nothing that cannot be filled with a few judicious tax increases (still leaving us paying vastly less than residents of the UK). In any case, a rise in VAT to 20%, which I suspect will happen whoever wins the next UK election, will certainly help.
Finally, this could be very good news for those of us who support Manx independence. Together with the removal of the reciprocal health agreement, this eliminates nearly all the advantages of a close constitutional relationship with the UK, whilst making a future as a microstate with full membership of the European Union seem a whole lot more attractive.
if this is the case them I think that will be it for the Kaupthing depositors, as the IOM gov will be too strapped to give them any guarrantee. Especially if Jim’s campaign is working, then the will be no consequences for the banking sector there.
And Richard such glee of so many old people being hurt? you truely are shameless.
The Manx have been trying to support their own peole for a while, as the English have allowed the plundering of their seas, their is little left of resources.
SO Richard the man of ideas, what should the IOM do without any FS industry or subsidies from the Gov (which most areas in the UK get).
If there is no income thaen taxes will make no difference.
Ideas please? Sell their children to the English? survive on remittances from manxnem overseas?
Iliam
1) If there is a change because of relative GDP then the IoM should increase, not decrease on your logic – if it’s GDP has risen it should get more. But the reverse is to happen.
2) It’s clear as a result that the formula simply includes discretionary subsidy. Even I’d say it’s hard to see how the Uk could cut £230m in a go without Douglas falling into the sea – which is undesirable. So the change will be arbitrary.
3) That will leave a massive subsidy left. Pray tell me why independence would ensure that survived?
Richard
Jim for Justice – whilst I see you are disgruntled over the KSF liquidation, to claim the Isle of Man is wholly responsible is laughable.
Yes many people banked with KSF on the island, many who deposited money as they were offering incredibly high interest rates compared to other financial institutions (a clear sign of being desperate for money in offering interest rates that will make them a loss).
It seems to me that people like to ‘cash in’ on high interest rates from financial institutions but don’t want any risk. I am not saying that its the same as playing the stock market – but in these difficult financial times then you need to be wary given the high profile ‘cap in hand’ affairs of Lloyds and such.
Here is an article over the collapse that goes into more detail :
SOME 11,000 customers were faced with losing more than £840m when KSF (IoM) collapsed.
Ironically, in the very same week that the bank went into administration, Tynwald was due to debate a proposal to expand the Depositors’ Compensation Scheme (DCS) to cover savings to a new higher limit of £50,000.
But some depositors were owed more than £1m and the Isle of Man Government had only £10m in the bank.
In the weeks that followed the collapse there were legal moves to have the bank wound up and calls on Financial Supervision Commission members to quit over the collapse.
The role that the UK government played in the collapse also became an issue as it was the actions of the UK Treasury that had seized KSF (IoM)’s assets in London. This sparked a bitter political row between Britain and Iceland where KSF was based.
In November the UK Chancellor Alistair Darling told a Treasury Select Committee investigating the banking crisis that there was a need to ‘have a long hard look about the relationship between the UK and the Isle of Man’.
Darling also described the Island as a ‘tax haven in the Irish Sea’.
Chief Minister Tony Brown MHK and Treasury Minister Allan Bell MHK reacted with astonishment.
With the US Presidential favourite Barack Obama talking openly about clamping down on ‘tax havens’ it seemed as though there was a political agenda behind Darling’s comments.
Darling announced a review of Crown Dependencies which would be carried out by Michael Foot. The report is due to be published by December 2009 but in May Mr Foot said his initial findings had not identified any concerns about the Isle of Man or its relationship with the UK.
In February this year FSC chief executive John Aspden was quizzed by the Treasury select committee over the decision to transfer money amounting to half of KSF (IoM)’s balance sheet from the parent bank in Iceland to the sister bank in London — money that was subsequently frozen when KSF (UK) was put into liquidation. Tony Brown and Allan Bell also appeared before the committee.
In March, Tynwald approved a move to release £180 million — later increased to £193 million — from the public purse for the Depositors’ Compensation Scheme and in the same month it was revealed a group claiming to represent ‘dispossessed depositors’ had sent out a blackmail letter threatening to ‘expose’ the backgrounds and business affairs of Tynwald members involved in the Kaupthing crisis. Bishop Robert Paterson — who sits on the Legislative Council — called in the police after receiving a ‘threatening’ letter.
In May, some KSF depositors claimed they had been denied the chance to vote on a government rescue plan. Creditors of KSF (IoM) took part in a critical vote on a scheme of arrangement proposed by the Treasury as an alternative to the bank’s liquidation. When the votes were counted, the scheme of arrangement was rejected and as a result KSF (IoM) went into liquidation.
In July, the Treasury said three-quarters of all KSF (IoM) depositors would be paid back in full by the end of September. Early payments to KSF (IoM) depositors had ensured 25 per cent of the bank’s 10,000-plus customers had already got all their money back.
Also that month Tynwald voted unanimously to set up a select committee to investigate the causes of the collapse of the Island’s Kaupthing Singer & Friedlander bank. The committee will also examine the role of the Financial Supervision Commission in ensuring the KSF (IoM) bank was properly managed.
In August, it was announced that the chief executive of Kaupthing, Singer & Friedlander had written a book about his role in the collapse of the Icelandic bank’s London division. Armann Thorvaldsson’s book, called Frozen Assets: How I Lived Iceland’s Boom and Bust, will be published by Wylie in October.
In the summer, Treasury officials forecast that three quarters of all KSF (IoM) depositors would be paid back in full by the end of September, while the final return for all those owed more than £50,000 expected to be about 74p in the £1.
But by the end of last month, KSF (IoM) depositors awaiting their compensation payments were still being urged to be patient as anti-fraud measures resulted in delays in processing the claims.
Since the beginning of September, compensation for 3,350 claimants have been approved and most were expected to have been paid by the end of that month.
The next payment run was due to include a further 500 claimants — meaning that 70 per cent of all eligible depositors will have been paid.
Also in September the liquidator announced a first dividend of 24.8p in the £1 for creditors. A second dividend is expected later this year.
It is expected, however, that it will take three to four years for depositors to get back all the money they can under the liquidation.
Many people criticise the island over its financial situation but given the number of tax agreements we have in place, and that we are on the OECD ‘white list’ of countries complying with the global standard for tax co-operation and exchange of information I don’t think we can be considered a ‘grey area tax haven’ as many people describe us.
The VAT sharing agreement could have significant impact but this doesn’t necessarily mean a big hike in taxes, certain issues may arise and certain benefits may disappear like tax relief on mortgage interest for example but I would severely doubt that this will spell the end for the island.
If anything was happen to the current arrangement, the Isle of Man should view this as an opportunity. The IOM Government could choose to undercut the United Kingdom’s VAT rate and attract new businesses, just like Jersey (3%) or Guernsey (0%).
Better the devil you know…
[…] of Jersey and Guernsey into the same nightmare scenario that I forecast yesterday is about to erupt over the Isle of Man — again as foretold by me several years ago. All those governments had more than adequate warning […]
Time to look at Gibraltars model, no VAT, population 30,000 – tourists 8 million a year, spirits 5 pounds a litre, cigs 90 pence a pack – the main shopping street is always heaving.
John
If you think about it, Gibraltar’s model is not really likely to work in the UK or any other major country. Let’s see population 60 million, tourists (at the same ratio) 16,000,000,000. No, perhaps not….
James I am in the wonderful Isle of Man and not the UK and I assumed reading all the other comments this was about the Isle of Man and that was what my posting was based on. Another of my thoughts is that if the
UK goes over to the euro then Mann should go to the USD as in Bermuda. We are not part of UK or Great Britain nor in the EEC and its said have
the oldest continuous parliament in the world
John
There must be something in the water in Man that makes you guys live a dream
wake up and smell the coffee
You’re going bust as of today unless you begin to charge serious tax
And that’s the end of your financial services sector
You can quit by all means – it just means we won’t bail you out – or recognise your passports. I wouldn’t recommend that
Richard
[…] of Jersey and Guernsey into the same nightmare scenario that I forecast yesterday is about to erupt over the Isle of Man — again as foretold by me several years ago. All those governments had more than adequate warning […]
You’re going bust as of today unless you begin to charge serious tax
Actually they will probably go bust if they DO start charging serious taxes.
Truat a tax consultant to not be able to see past taxes! you can also cut government expenditure (shock and horror from the left)
Richard,
The soft water here is unlimited and is included in your rates which for a small cottage is 300 pounds a year and for that my dustman
comes twice a week, compare that with the UK council tax with added water rates. The smell of the coffee is wonderful and tastes even better
in Costa and M & S here in Douglas. Unemployment has gone down here, its
around 2%. In this weeks local paper theres lots of jobs including Barclays Bank and banks the UK government have bailed out. Think everyones just as awake here, its quite a big island, ten times the size
of Guernsey and farming heres booming.
How safe is my deposit?
Nationwide International is the wholly owned subsidiary of Nationwide Building Society. As well as the statutory protection provided by the Isle of Man Depositors’ Compensation Scheme, Nationwide Building Society guarantees the liabilities of its subsidiary. We believe this ‘double protection’ provides peace of mind for even the most cautious investor.
Nationwide here quotes this on their web……
VAT here is the same as the UK and is paid to the UK through the common purse agreement and then repaid to Mann using a calculation agreed by UK and Mann and income tax, national insurance tax still has to be paid here.
@Adam You say: ”
to claim the Isle of Man is wholly responsible is laughable.”. First I can not see me having made that claim in my comment under this post. Secondly it is a pity that you could not be more original in your comment- you just quote verbatim the IoMToday journal.
.
That said let me set the record straight. Half the bank’s assets could not have been lost when Kaupthing UK went into administration if they had not been transferred there in the first place by the directors of KSFIoM with the full backing of the island’s Financial Supervision Commission.
That is why I have said on my blog that the prime responsibility for the collapse of the bank is on account of that extraordinary crass decision to transfer these assets totally unsecured to a sister Kaupthing bank whose parent bank in Iceland was known by the FSC (& the UK FSA) to be in serious trouble.
You are wrong to state that KSFIoM was “offering incredibly high interest rates compared to other financial institutions”, and you are wrong in your assessment of the risk that people were taking by putting their life savings in the trust of the bank.
I opened an account on the following clear understanding:
1. the bank was totally solvent
2. it had a AAA credit rating
3. it had no sub prime
4. it was one of 5 strong Nordic banks similarly placed
5. it could offer 1% more than some of its competitors as it had no sub prime debt
6. it had a deposit guarantee from its parent bank
7. it was strongly supported by the FSC; indeed the bank’s manager was (& still is) deputy chairman of the FSC
8. there was a credible IoM compensation scheme in place
By any risk assessment criteria no prospective depositor could have better assurance than this.
Whatever else happened in Whitehall & Iceland, the buck stops with the directors of KSFIoM because it was their decision that led to the loss of the assets of the bank which in turn resulted in the loss of its banking licence, withdrawn by the FSC that had backed them in their decision. Ironic & hugely tragic, but certainly not laughable.
there be a learning curve in this – better to be part of the EU and independent than part of the “British Isles ” we would have EU and NATO for defence , a switch to Euro not US$ as a previous person commented , spend serious money on educating the locals , i.e. return to Island loans written off etc etc – perfectly placed to be a bits and bytes economy ,with the obvious tax planning – Zero percent was both ambitious and indeed counter productive , the world is changing – time to adapt !
Interesting to see if there will be any of the local directors of KSF iom charged !
@ Odin, Interesting thoughts, if you think the EEC or NATO would protect
IOM, it would take them a year just to think about it and then the PC brigade would kick in and just who would attack IOM I wonder, and whoever
even thought about it the UK would be there as its on their doorstep so no to the EEC its just full of quangos and P.C. and would not benefit IOM one iota. Education is good here with youngsters well involved with
computers and on par with some of the better UK schools. So why I hear you ask do I think the USD would be better than going to the euro if it becomes the case in the UK, well when all is said and done the wealth of the USA is higher than almost any other nation, they still have great mineral wealth, they will only take oil again out of Texas when everyone else runs dry and there is nearly 400 million of them who would know about the IOM if we went over to USD so on that next european trip they make may well include a detour to IOM I hope!
PS. I cannot comment on KSF, I looked at all the banks here some years back and stuck with Nationwide, their interest was not as high as the Icelandic or Irish banks but I felt safer with Nationwide (fingers crossed!)
@John – being so close to UK and indeed Ireland – any threat against the island would be a tripwire – i.e. never going to happen , any offensive force or threat to the Island , and hey if the wind blew sour we always have the French .With regard to the US $ /Euro argument , the USA has two issues one it is truly a debtor nation at the whim of the Chinese and others, In addition to this any country with natural resources is almost cursed it that it slows other parts of their economy.If you actually check the GDP and per capita income of the USA – hey is an eye opener !
Also pop USA is 300 million thereabouts – EU de facto and those countries
which use the Euro – well in excess of 300 m and they travel – less than one in 10 USA have a passport !
For the schools and stuff , yes they are excellent it is the off island eduaction and encouraging the brighest to return after study.
One interesting thing to while away an hour on the computer – check countries and patents yep the more patents the more income – right down to state and county level in the states actually – and similar with Europe !
Example Luxembourg – landlocked , no natural resources – highest GDP in the world last time I looked , Ireland until the banks – doing pretty well also and they are neutral ( sort of ) and to our left.
So the whole issue of independence has at least the worth of some national debate rather than having a judicial system and indeed a parliament which is subservient to the UK and indeed makes the Manx the whipping boy of the UK parliment.
Well perhaps I have lit the touch paper
http://www.iomtoday.co.im/news/Tax-blow-Island-set-to.5748652.jp
Details now released of the actual figures involved
I question who pays you to write this stuff and if no one does pay you, what your motivation is Richard?
Have you actually ever visited the Isle of Man (or Jersey or Guernsy for the matter?). If we were merely a disadvataged and poor part of the UK which would be the alternative to our being a thriving economy, the UK tax payers would need to stump up far more than the Common Purse monies to subsidise us.
Your attacks are always extremely personal and poisonous and I for one would love to know what your motivation actually is?
@ Jilly a valid point – look forward to your response Richard
Jilly
a) no one pays me to write this
b) motivations:
– concern for the poor of the world’s poorest countries abused by tax havens
– a profound dislike of dishonesty, abuse, cheating and professional misconduct
– the wish to see a fair, progressive tax system in the world
– a desire to hold the world’s corporations to account for what they do
– a belief in economic justice
– all founded on Christian faith
Try:
Luke 4.16-21
When he came to Nazareth, where he had been brought up, he went to the synagogue on the sabbath day, as was his custom. He stood up to read, and the scroll of the prophet Isaiah was given to him. He unrolled the scroll and found the place where it was written:
“The Spirit of the Lord is upon me, because he has anointed me to bring good news to the poor. He has sent me to proclaim release to the captives and recovery of sight to the blind, to let the oppressed go free, to proclaim the year of the Lord’s favour.”
And he rolled up the scroll, gave it back to the attendant, and sat down. The eyes of all in the synagogue were fixed on him. Then he began to say to them, “Today this scripture has been fulfilled in your hearing.”
Tax havens do not bring good news to the poor. They oppress them.
That’s my motivation.
Richard
Jilly
If the Isle of Man is a thriving economy, why should it need a subsidy?
@Richard @all
Yes indeed now there are some interesting topics !
a. accepted
b.1. abused by tax havens granted – also abused by religion of all faiths ,from the C of E , Catholic church and contraception , muslim faith and during floods drowning of females due to dress constraints , first steps to female betterment in any poor country is fewer children !
All of whom pay no tax and indeed most are state subsidised !
2. a fact of life tax as anything will differ and be abused
3.Economic Justice is helping people to help themselves
ref Luke – “two hands doing are more powerful than 1000 clasped in prayer “
Reading all the above contributors with some considerable interest and Richard Murphy’s repsponses, it does seem that you do Richard, have a personal vendeta towards the Isle of Man.
As one questioner asked, have you visited the Isle of Man? Do you honestly believe that the City of London, or the UK politicians for that matter, are any more “honest” and above board in their transactions than the Isle of Man system? You only have to look at the chaos with the UK banks and the UK politicians expenses claims fiasco to realise that “the pot calling the kettle black” is highly appropriate
No I don’t believe London more honest
But I believe Douglas gave them increased opportunity to be dishonest and hide it
It’s not a vendetta against the Isle of Man
It’s vendetta against abuse
You just happen to be one of many to make a business of supplying it
upon reflection on Today’s events with regard to the Isle of Man , it has struck me that Mr Brown (Gordon) et al are little more than bullies , after all prevention of terrorism laws used to crush Iceland , bullying with the Isle of Man ! same thing , shame he cannot nor will not stand up to the EU over UK payments to it !
You still haven’t answered the question as to whether you have visited the IoM or not.
If you have or had, I’m feel sure you will find the vast majority of us as normal, hard working, down to earth people, akin to most people in the UK. I find it surprising that you seem to find glee in our potential demise which by it’s nature will affect the weak, the poor and sick of the IoM to a greater extent than those you perceive to be guilty of greed.
Furthermore, I do not feel it is the Isle of Man that has led London, I don’t see the London institutions lagging behind a small jusidiction like the Isle of Man. It wouild not say much for the quality of the City if that were to be the case.
I feel you need to look inward to the UK for the solution to the problems and not outward towards the Irish Sea.
Like Iliamn Dhone, I feel the UKs atitude towards the IoM latterly is pushing us towards abrogation and making more of us feel Nationalistic. I am, by the way, English, having moved to the Isle of Man 30+ years ago, not for tax purposes, but purely for a normal job.
If any of you have ever visited the Isle of Man, you will not agree with the above story.
The isle of Man is made up of 37.5% U.K immigrants. People who all left the U.K to escape the broken country that it is.
Lowest crime rate in Europe along with a higher standard of living than the entire U.K are just a couple of reasons they choose the Isle of Man. Virtually no immigration problems (except from the U.K, which the Isle of Man has had no problem with.)
The I.O.M pays the U.K government extortionate amounts of cash for military protection every year. Protection from what and whom?
I seriously doubt whether the U.K has sufficient means to protect itself.
The IOM is not and never has been a tax haven. This is why we are on the “white list” and not “black list”. Its ability to see the benefits of offering industry the chance to thrive is what sets it apart from the U.K.
Lower taxes for residents is simply a kick back from having a small infastructure. By not accepting mass immigration and ensuring all immigrants are gainfully employed, means our cash reserves are not drained supporting the out of work.
Zero corperate tax is what gave the island its thriving economy in the first place. Without the industry and employment opportunities created by this, you can believe that the U.K tax payer would be more out of pocket supporting a nation detatched from the outside world.
An island the size of ours, simply does not have the means to support its economy with import and export!!
I think the government of the IOM is finally starting to realise that its so called “dependency” on its neighbour is dubious. If you spent one year living on this Island, you would change your tune entirely. The U.K could learn alot from this jewell in its crown.
There has been much talk of “broken Britain” lately, which seems to be an understatement to say the least. The Isle of Man government is guilty of providing an exellent standard of living for all who reside here and nothing else!!
Debrogation seems to be the only way of distancing ourselves from the crumbling empire surrounding us.
Once initiated, remove VAT, add a purchase tax and drive the finance sector harder. Push for more of a share of the banking industry with tax incentives!! Drive for more of the manufacturing sector with grants and such. Then see how much of a drain on the U.K economy we are.
Sound extreme? YES, which is why it has never been done.
If we were so hell bent on bankrupting our competitors this would have been an obvious move.
True, we would have to accept passport control travelling to the U.K. Maybe a red/green lane for import/export (the latter is very little anyway). How could we be worse off?
Military protection? Do you think the U.K would stand back and watch an island 65 miles from there shores be invaded? Doubtful!!!
The VAT share agreement may well have worked in the IOM’s favour in previous years. But it was exactly that. An agreement!!
As for the Isle of Man becoming bankrupt. Unlikely! The national debt for the United Kingdom as of July 2009 stood at £800.8 BILLION!! A drain on the European community wouldnt you say? Virtually nothing for the Isle of Man I should add.
Losing £100 million per year? Ok. This will just have to be generated elsewhere! With GDP per head already higher than the U.K, a small tax hike will not be too difficult to swallow.
Anything to protect our way of life and remain independant.
Manx people have no problems with English (or any other nationality for that matter) Just a huge problem with the shambles of a Government thats voted in repeatedly!! And then complained about constantly!!
As for the bible quotations…. Im not going to go down that road.
With all the things religion has been responsible for over every part of the world, you still find the time to complain about a so called “Tax haven” Oh dear!
In answer to the question – yes, of course I have been to the Isle of Man
Other comments I ignore – you’re living a fiction
Richard
@Phil Harrison
Richard has many vendettas and yet claims to be a Christian. His stance appears to draw on a rich Levitican stream rather than anything that Christ preached!
@Richard -one point regarding the tax situation from our earlier discussion above , would it not be fair if tax relief for churches and religion be removed and they be put on the same footing as other businesses ?
“Have you been to the Isle of Man”, is not a “Yes of course i have” It’s surprising how many, so called, experts have not and still profess an opinion.
Feel free to ignore the other point, which you don’t feel able to comment on, I’ll happily continue to live in this fictional Isle, as Stephen says, “The Jewel in the Irish Sea”. He’s quite right, I came for 12 months and am still here 30+ years later.
Still, we are all entitled to our own opinions, even though poles apart.
Odin
The Church is not in business
Richard
Phil
Please read secrecyjurisdictions.com to answer your other questions
Richard
Girrl
No doubt people like you said similar things to those who opposed the slave trade
Richard
My understanding is that the UK Govt withholds vital information from the IOM Govt concerning how much VAT is collected from IOM businesses through UK VAT rep members (i.e. UK VAT groups, which may include an IOM member). So, VAT arising and otherwise collectible in the IOM by IOM C&E actually goes directly into UK coffers.
Also, virtually all goods sold in the IOM come from UK suppliers or distributors. So IOM traders collectively pay £m’s in their input tax to UK traders who pay their output tax to HMRC. HMRC doesn’t credit the IOM trader for his input tax, unless of course the IOM trader is VAT grouped with a UK parent.
So overall, the picture is more complicated than many people immediately see. The Sharing Agreement is supposed to fix this imbalance.
But I would question how fair this is if the UK is holding out on the IOM in terms of sharing the relevant underlying data.
UK motive? If this is simply a free subsidy given to the IOM, why did the UK Govt agree to do this in the first place? Why has it persisted for so long?
The UK is certainly not stupid, and has shown it is not at all averse to opportunistic plunder (look at the Lloyds/HBOS deal and £5b of 11% preferences it subscribed to, after forcing the banks together). I view the UK Govt with suspicion, and have to question “what’s in it for them?”. I’m pretty sure you and I simply do not have the relevant bigger picture view.
So quantitatively, very few people indeed understand the detail of the VAT agreement. Qualitatively? We can all speculate on this, but it doesn’t make a difference if we don’t know the truth.
For there to be true clarity and sensible discussion about this, the facts have to be understood. Numbers and motives. One without the other doesn’t stack up properly.
Richard.
The Isle of Man is NOT a tax haven. Residents pay 10% tax, rising to 18% for higher earners. How is this a tax haven??
A company with a head count over a certain figure does not pay tax. This is simply a move by Tynwald to protect business within the island. We, as you know are detatched from the U.K and this makes trade and industry difficult to aquire. The I.O.M HAS to have different laws to avoid becoming a “third world” country.
Without our tax concessions, you would be left with one more poverty stricken nation to pray for. (love thy neighbour????)
Were you aware that the Catholic church was audited in 2002 by two independant bodies? The estimated value of all cash and assets was calculated at over £262 BILLION!! Sounds like a business to me. Oh, and at least £80 BILLION of this worth is property and valuable goods seized during the crusades and other church adventures. Mosttly taken from oppressed, poverty stricken citizens.
I have nothing against religion, or followers of religion. But, this particular topic has nothing to do with church. A lower tax bracket does not make you godless, evil and deserving of demise!!
Maybe if the U.K were to have followed the R.O.I with the 40% income tax, you would have felt fulfilled??
If everyone in the U.K paid 40% tax, the government could stop borrowing by the BILLION from the E.U?? OR, would you prefer to keep your taxes where they are and be labelled as a “TAX HAVEN??”
I venture to suggest that Richard is a committed Doomer poisoned by additives in his water.
Better the Island stands its ground and follows the example of Bermuda if need be.
I venture to suggest that Richard is a committed Doomer poisoned by additives in his water.
Better the Island stands its ground, abolishes VAT and follows the example of Bermuda.
Well if Richard is correct , which I doubt – all I can say is thanks for the new prison ,new hospital , upgraded Airport , Power from waste incinerator and all the other nice shiny new stuff !
However as the UK Gov will be raising the VAT rate back to or indeed probably higher than 17.5% to balance things this will mean that the IOM income from the “purse” will rise again !
If the EU rumblings regarding 0/10 come to anything it will be back to 10/10 which will certainly make up the deficit with increased taxation!
Meanwhile some trimming of budgets which maybe a little generous as is within the Island We shall be fine , free to enjoy a lack of expensive council tax as per UK ,better quality of life , no speed limits, no speed cameras and short commute to work without traffic jams.Freedom to flourish indeed !
@Richard Murphy
Richard
Vanity again. To equate (as you have done before) two men with blogs (you and John C) with the anti-slavery movement is hilarious.
I think that international tax standards need to be raised across the board (the level playing field…), and I am sure that your constant scapegoating helps no one – least of all you.
Girrl
Girrl,
If you read NT, you will find that Christ was quite keen on the Judaic scriptures. To insist on Leviticus is actually very Christian.
But I want to know more about your view that international tax standards need to be raised. How? Maybe we have more in common than I thought?