Isle Of Man Government Considers Concerns Of The Professional Sector

by Amanda Banks, Tax-news.com, London

10 April 2001

The Isle of Man's Assessor of Income Tax, Ian Kelly, has assured the Island's Association of Corporate Service Providers (ACSP) that the Manx government is considering concerns that the association recently raised.

According to a report in the Isle of Man press, the ACSP has written to the government asking it to address issues relating to the decline in the number of company formations on the island and also the recent loss of exempt companies.

In response, Mr Kelly attended an ACSP seminar to reassure its members that the government is taking the concerns seriously and has ordered a review on the issues. Related concerns were brought up at the seminar including taxation relating to companies, international issues, individual taxation and the timetable for planned changes.

Mr Kelly's speech focused on the need for change if the Isle of Man is to compete with international standards and growing competitive pressures due to globalisation. According to the Isle of Man online news service, he said the Treasury aimed to reduce the direct taxation burden, improve mechanisms for redistribution of income; open up new markets, and meet international challenges. Moreover, low corporate tax rates will stay as they are and the Treasury also intends that there should be simplified rules regarding capital expenditure allowances.

Mr Kelly also said the issue of tax relief on venture capital was currently being discussed by the government as well as tax credits for individuals with the tax expected to be based on a yearly basis with incentives for savings.

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