{"id":11491,"date":"2011-08-15T09:37:37","date_gmt":"2011-08-15T08:37:37","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=11491"},"modified":"2011-08-15T09:37:37","modified_gmt":"2011-08-15T08:37:37","slug":"the-isle-of-mans-vat-agreement-getting-close-to-reality-at-last","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2011\/08\/15\/the-isle-of-mans-vat-agreement-getting-close-to-reality-at-last\/","title":{"rendered":"The Isle of Man’s VAT agreement – getting close to reality at last"},"content":{"rendered":"

This issue still rumbles on<\/a>.<\/p>\n

Whilst issue was focused elsewhere last week the detailed reasons for the new arrangements<\/a> between the UK and the\u00a0Isle of Man crept out. \u00a0As I suggested a long time ago (back in 2007) the likelihood is that the\u00a0Isle of Man has a very\u00a0different\u00a0VAT output\u00a0structure\u00a0to the UK -\u00a0because\u00a0so many of its sales relate to financial services which are VAT\u00a0exempt\u00a0and 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\u00a0exempt\u00a0outputs it would in that case recover too much VAT \u00a0if that was done. The party\u00a0benefitting\u00a0was, of course, the\u00a0Isle of Man<\/p>\n

The UK has now realised this (at last) and has used this as the basis for, correctly, renegotiating the arrangement with the\u00a0Isle of Man.<\/p>\n

There is still\u00a0opposition\u00a0in the Island<\/a> to the new deal which will, I am sure justifiably, take another \u00a375\u00a0million\u00a0from the Island each year, bringing the\u00a0total\u00a0adjustment now in line with my original estimate of the annual subsidy the UK was\u00a0giving\u00a0the\u00a0Isle of Man each year.<\/p>\n

But it's time for the\u00a0Isle 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.<\/p>\n

When will the\u00a0Isle of Man realise it is time for plan B?<\/p>\n","protected":false},"excerpt":{"rendered":"

This issue still rumbles on. Whilst issue was focused elsewhere last week the detailed reasons for the new arrangements between the UK and the\u00a0Isle of
 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-11491","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\/11491","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=11491"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/11491\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=11491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=11491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=11491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}