{"id":10611,"date":"2011-06-21T08:08:17","date_gmt":"2011-06-21T07:08:17","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=10611"},"modified":"2011-06-21T08:08:17","modified_gmt":"2011-06-21T07:08:17","slug":"the-isle-of-man-is-going-to-lose-more-vat-and-tony-brown-should-admit-it","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2011\/06\/21\/the-isle-of-man-is-going-to-lose-more-vat-and-tony-brown-should-admit-it\/","title":{"rendered":"The Isle of Man is going to lose more VAT – and Tony Brown should admit it"},"content":{"rendered":"

The Isle of Man Today web site has noted<\/a>:<\/p>\n

THERE will be a public announcement if any changes of substance are to be made to the VAT sharing arrangement, the Chief Minister told the House of Keys.<\/p>\n

Tony Brown revealed in an exclusive interview with the Examiner last month that the UK continues to press to take another substantial slice off our VAT revenue.<\/p>\n

He said the UK had made its intentions quite clear that the VAT share the island should receive should be no more than we would collect if we were independent.<\/p>\n

And he said if the UK pressed ahead with this, it would mean a substantial cut in government revenue on top of the 25 per cent loss resulting from the last VAT bombshell.<\/p><\/blockquote>\n

Well, let me make the announcement for him then, since he seems so reluctant to do so.<\/p>\n

My information makes it very, very clear that this reform is going to happen.<\/p>\n

As I noted last September:<\/a><\/p>\n

Rumour reaches me that we should shortly see announcement of a massive increase in GDP in the Isle of Man.<\/p>\n

Why could that be? Well, the\u00a0VAT sharing agreement<\/a> with the UK happens to be based on ratios related to relative GDP. So if the Isle of Man manages to report a significant GDP increase whilst the UK\u2019s in the doldrums of near recession guess who wins significantly? Yes, our friends in the Irish Sea.<\/p>\n

But surely they wouldn\u2019t do such a thing, would they?<\/p><\/blockquote>\n

They were stupid enough to go ahead despite the warning as to how it would be received in the UK Treasury that I gave. And as I showed<\/a>, their claim that the resulting revised GDP was 'correct' was utterly spurious - despite their furious briefing to the contrary.<\/p>\n

Well, more rumours reach me, and yet again they suggest that I'm right on this issue. The UK Treasury is furious with the Isle of Man for this blatant\u00a0attempt\u00a0to re-jig the data on which the Common Purse Agreement governing the sharing of VAT revenues is based. And as a result they're not just looking at revising the agreement using the data I have noted, they're arguing the Isle of Man has been blatantly manipulating its VAT, for example by encouraging the film industry and yacht registration to distort its apparent VAT position.<\/p>\n

The result is that The UK ate not just arguing the GDP data is wrong - they're seeking to take these other factors, which are seen as tax haven abuse, out of account too.<\/p>\n

It's the price you pay for playing fast and loose, and as a result the peope of the Isle of Man will pay a heavy price.<\/p>\n

It's time their Chief Minister told them the truth - because if I know this you can be sure he does too. But only one of us is saying it.<\/p>\n

I have not yet worked out what the change may be - \u00a0I have the data to do so, but not the time. But if it's as tough as I suspect the impact on the Isle of Man this time may be as significant as last time. After all - it's just not true as the Isle of Man claims that for VAT\u00a0purposes\u00a0income\u00a0per head there is \u00a345,000 - some \u00a317,000 or more a year in excess of the UK. And even if it was - the UK should not be subsidising it!<\/p>\n

There are tough times ahead in the Irish Sea - and it's all the fault of the Isle of Man politicians who tried to pull a fast one.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Isle of Man Today web site has noted: THERE will be a public announcement if any changes of substance are to be made to
 Read the full article…<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,1,34],"tags":[],"class_list":["post-10611","post","type-post","status-publish","format-standard","hentry","category-isle-of-man","category-uncategorized","category-vat"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/10611","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=10611"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/10611\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=10611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=10611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=10611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}