Thursday, January 17, 2013

Manx tax strategy

Interesting: Isle of Man announces it will keep its 0/10 corporate tax rate and pretty much the rest of its tax system as is, but wil cooperate with the US on FATCA and the EU on its codes of conduct, and might join the mutual administrative assistance in tax matters agreement, and even "consider working with other countries and multilateral organisations on the development of co-operation systems similar to FATCA." I think that last one is in regards to the UK, but it could be broader in scope.

At the same time, the Isle of Man will

"maintain competitive  personal income tax rates  as one of the features making the Island an attractive place to live and work; and
maintain a competitive business tax system in the Isle of Man to support economic development;"
among other aspirations. I think they are in a tough spot, with the US and the UK focused on chasing individual tax cheats and corporate tax avoiders (respectively, perhaps) through their banks. By way of background, the tax strategy says:
The Isle of Man‟s taxation policies have played an important part in our economic success. 
...The key principles of fiscal sovereignty, economic stability and adherence to international standards which underpinned the original taxation strategy remain just as relevant today. 
I'm not sure what anyone means by fiscal sovereignty anymore. Then again, I never really did think it was a real thing.

1 comment:

  1. Just saw the final FATCA regs have been "published" although they don't seem to be available anywhere on the internet yet. Strong endorsement of FATCA be Neil Wolin(who I don't particularly like)but most take note of the fact that Wolin is supposedly on his way out of the Treasury in a matter of weeks if not days.