It would be so good if there was some candour offered by those in charge in the Isle of Man. But as yet there is no sign of it. Take this from Isle of Man Today quoting Malcolm Couch, the Isle of Man Comptroller of Income Tax:
Mr Couch does not accept that completely scrapping zero 10 is inevitable, however. He said: 'The key thing is that no decisions have been taken. There is no requirement put on the Isle of the Man that certain things have to happen.'
He said: 'We have received briefings by the UK about the lie of the land and this is an appropriate time to look to see if there is a need to make any change.’
This is hard to equate with Guernsey and Jersey having been told zero-ten is dead. The Isle of Man system is remarkably similar to Jersey’s. So why not admit it too is dead in the water?
And why not admit as well that the problem is not a zero per cent tax rate — which is quite acceptable to the EU? The problem is the ring fence abuse within the Isle of Man that means that local companies are taxed (albeit by deliberately convoluted methods designed to appease critics, but which the system failed to do so) and companies that are owned by non-residents are untaxed. But Couch never mentions this, instead saying:
The question, of course, is if we do move away from the zero rate, what rate should we set if we are to remain competitive? Gibraltar's rate is 10 per cent, Ireland's is 12.5 per cent. 'The question is what rate would pass muster with the EU,' said Mr Couch.
This is utterly misleading — and I genuinely think Malcolm Couch knows that. Tax rates are not the EU’s business and the Code does not address them.
Why not be honest Malcolm and actually say what this is about — which is that you are being told to stop being abusive as a tax haven / secrecy jurisdiction? Surely, at a time when the massive misinformation that has been fed to the people of the Isle of Man has resulted in a financial crisis for the island now is the time to state things as they actually are and not pretend the problem is with the tax rate?
Or is such candour too much to ask for?
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Speaking of Candour Richard, I am still hoping to see your calculations relating to IOM VAT with which obtained your 4 minutes of fame for on the politics show.
Richard
You weren’t in the meetings with the UK, so all you have to go on are the media comments from the three CDs. As you are the arch-user of the media, it should hardly surprise you that the CDs should put their side of things in public. In Jersey, there is a great deal of annoyance that Guernsey jumped the gun and issued its press release – Chief Minister directly without talking to his advisers. Quite what the tactics are is anyone’s guess.
I know that you are wrong in your assertions about rates. Simply wrong. Some EU states do feel that they can manipulate the Code Group to stray way beyong the tenets of the Code itself. As I have said to you before, the Code Group is a ‘secrecy jurisdiction’ with dreadful corporate governance and almost nothing in the public domain: yet it leaks like a sieve. It really can’t be trusted, as it is manipulated by politicians and not run by the tax bods.
As you are wrong about rates, Couch’s comments are perfectly appropriate. The EU states have many exempt and equivalent-to-zero regimes, which you would be aware of if you actually knew anything about international taxation. The problem for the Isle of Man, Guernsey and Jersey is to have a system (ideally three different systems) that get EU politicians off our backs. That is why looking carefully at systems in the EU is EXACTLY what is needed, and why the Isle of Man can say with total honesty that nothing has been decided: although 0% is likely to have to go.
By the way, I’m disappointed that you once again descend to ad hominem attacks on someone like Couch, who is held in high regard for his honesty and integrity in the Isle of Man, and similarly in many countries for the massive amount of work that he has done in getting the Isle of Man and other small finance centres to a far better place in terms of international standing. I know that you always default to your one-way filters, but considering that Couch is even feared to an extent in Jersey for being so far ahead, you are aiming at the wrong target.
The Girrl
I think that transparency as far as TJN is concerned is a one way mirror
Girrl
With the greatest of respect, you are saying I’m right. the Code does not, you confirm, cover rates even if some in the EU are seeking to make it do so
And Couch designs and promotes tax systems that are in my opinion abusive. Why shouldn’t I say so? I can see no reason why not. Dammit, they don’t comply with the EU Code for starters. Someone has to take the blame for that. Why not him?
Richard
Richard,
You mention the “massive misinformation that has been fed to the people of the Isle of Man”.
Well, if there is so much of it why don’t you quote examples?
Yours etc
PK
Let’s start with failure to disclose the existence of the subsidy and the detailed working of the CPA, shall we? Even to MHKs
Richard
Richard re post #4
How can you twist my comment to infer that I’m saying you are right?!
“And why not admit as well that the problem is not a zero per cent tax rate” – it is the problem, in the IOM, Guernsey and Jersey – and you are wrong!
My reading is that Couch is taking the IOM to the right place in an orderly fashion. Campbell in Jersey and Gray in Guernsey don’t seem to compare, IMO.
The Girrl
Richard,
Total tosh. The Manx people have been well aware of the agreement and the VAT returned from the UK for years.
Care to try again re your “massive misinformation”?
Yours etc
Now openly published, Mr Murphy:
http://www.gov.im/lib/docs/cso/sharingarrangementsfurtherrevisionoc.pdf