This issue still rumbles on.
Whilst issue was focused elsewhere last week the detailed reasons for the new arrangements between the UK and the Isle of Man crept out. As I suggested a long time ago (back in 2007) the likelihood is that the Isle of Man has a very different VAT output structure to the UK - because so many of its sales relate to financial services which are VAT exempt and which therefore have no VAT due on them. In that case to simply pro rata VAT receipts on the basis of total turnover of the two places was always going to be wrong: if the turnover of one party was heavily dependent on VAT exempt outputs it would in that case recover too much VAT if that was done. The party benefitting was, of course, the Isle of Man
The UK has now realised this (at last) and has used this as the basis for, correctly, renegotiating the arrangement with the Isle of Man.
There is still opposition in the Island to the new deal which will, I am sure justifiably, take another £75 million from the Island each year, bringing the total adjustment now in line with my original estimate of the annual subsidy the UK was giving the Isle of Man each year.
But it's time for the Isle of Man to shut up - asking for a subsidy to be a tax haven is not going to win them any friends right now, and the sheer hypocrisy of the critics who want to use UK taxpayer's funds to subsidise the abuse they permit is extraordinary.
When will the Isle of Man realise it is time for plan B?
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“When will the Isle of Man realise it is time for plan B?” .. I’d be surprised if many existing MHKs feel there is anything to be gained from facing up to reality and being honest to their electorate before an election. I suspect many of them think their best strategy for personal enrichment is to carry on as normal and refute any suggestion that things have to change and may result in a lot of pain.
@ Spoon of Internet
It is not just the Manx parliament who have a vested interest in maintaining the secrecy status quo to conceal lies, deceit and fraud on the island. All those in “power” including the police and the judiciary contribute to the conspiracy by remaining silent.
Meantime the government spends £millions on PR as it attempts to misinform the world that the Isle of Man is the honest deal … and to keep the local population comatose with mis-information.
Horrible place.
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