IoM Responds To Business Tax Speculation

by Jason Gorringe, Tax-News.com, London

13 August 2010

The Isle of Man Treasury Minister Anne Craine in a statement on August 11 moved to allay fears regarding potential job losses in the local financial sector based on speculation over the outcome of the island’s business tax review.

The statement was made against the backdrop of the ongoing review of the island's business tax regime, which has been found not to comply with the 'spirit' of the European Union Code of Conduct on Business Taxation. The other Crown Dependencies, Guernsey and Jersey, are also undertaking similar reviews.

Commenting on rumors surrounding future changes to the island’s tax regime, Craine stated:

“It is still far too early in the process to speculate whether the island will amend its current business taxation system. At this stage it is not clear whether the current ‘zero/ten’ regime needs to change.”

“The consultation has attracted a diverse range of views on the island’s business taxation system, and I am grateful to all those who have taken the trouble to contribute to this exercise.”

“Since the launch of the consultation, the European Union Code of Conduct Group for Business Taxation has determined that the Isle of Man’s business taxation system should now be subject to a formal assessment. “

“Any decision on whether the business taxation system needs to change will not be made until the outcome of this formal assessment is known. If a change is required the island will not pre-empt any move ahead of that of our competitors.”

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