Details Announced Of IoM Tax Amnesty

by Jason Gorringe, Tax-News.com, London

08 May 2003

The Isle of Man government has announced the details of a tax amnesty first unveiled in Treasury Minister Alan Bell's budget earlier in the year. It has been given the official name 'Pairs' (Penalty and Interest Remission Scheme) and will run from April 9 to October 31 this year.

The scope of the amnesty is expected to be quite far reaching, and will include individuals who have failed to complete a tax return correctly or on time, or notified the authorities as to their liability to VAT, customs, excise or local income tax. The scheme will also apply to those in arrears on National Insurance contributions.

According to the Treasury, the cost saving for anybody coming forward under the amnesty could be "significant", and will provide a "rare opportunity for people to regularise their VAT, excise, customs and income tax affairs without the fear of the penalty and interest charges which normally are payable in cases of non-compliance".

Commenting on the latest initiative, which is similar to another amnesty that took place in 1994, Alan Bell told IoM Online: "our patience with such people is wearing thin and as our taxation receipts come under pressure, those receipts we have currently "overlooked" will no longer be treated so benevolently. In short, we will be seeking to collect all taxes due and will enforce this policy more vigorously in the future."

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