What we are up against!

  • z1000000
  • 16/10/08 31/05/09
  • unspecified
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Posted: Sun, 19/10/2008 - 19:55

I've just been sent this from the Mail on Sunday.

http://www.mailonsunday.co.uk/news/article-1078819/Caravan-park-owner-bu...

Read the comments and see what us tax dodging, greedy, stupid, fat cats are up against.

I started writing a reply, but I've just got in from work and haven't the strength.

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mail on sunday comment

  • chd
  • 13/10/08 30/09/09
  • a depositor
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  • Sun, 19/10/2008 - 22:14

I too don't have much strength, but got so annoyed by the accusing comments that my adrenalin took over. Here's what I wrote:
"Uk residents who put their life savings in offshore accounts DO NOT get out of paying British tax. They pay just like everyone else. They are neither greedy nor tax evaders. Before posting accusing comments, you should maybe check up on the facts. Most of the depositors in this bank are either tax paying UK residents or UK expats who live and work abroad and cannot open a bank account in UK because they no longer have a UK address.If and when they decide to return to the UK, they will pay their taxes just like everyone else. Unfortunately, many of these people will now be your burden as they will have to survive through government hand-outs, paid by YOUR taxes. DO YOUR HOMEWORK FIRST AND THEN POST YOUR COMMENTS."


Mail on Sunday comment

  • Emabroad
  • 10/10/08 30/08/09
  • a depositor
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  • Mon, 20/10/2008 - 00:16

Like you, I too reacted with the usual explanations: not allowed onshore bank accounts, offshore residents, Expats and retirees etc.
Have just checked the Mail On Sunday's comments below the article and not one response representing our side of the story, that I can see, has been published. Odd that.


EU Witholding Tax

  • z1000000
  • 16/10/08 31/05/09
  • unspecified
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  • Mon, 20/10/2008 - 07:23

Could someone smarter than me try to explain the EU Witholding Tax in a way the kind people who all assume we are fat cat tax dodgers may understand? I don’t think I’ve seen anything about it in the press, but I know I had to fill in a declaration when opening the KSF account. UK and EU residents either get taxed, or their financial details are sent to their own tax people. So how do they NOT pay tax?

One of my MEP’s replied, (correctly), that as the IOM isn’t a part of the EU or the UK, my problem wasn’t really anything he could help me with. I did point out that it’s easy to get confused, not being an international lawyer. The IOM’s head of state is the Queen and they have UK passports. And if they are nothing to do with the EU, why did I have to fill in a form about EU Witholding Tax?


z1000000: the answer is

  • malc
  • 11/10/08 31/05/09
  • a depositor
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  • Mon, 20/10/2008 - 09:47

z1000000:
the answer is simple, the IOM along with most of the better offshore centres signed an agreement with the EU over either witholding tax or disclosure.

If you are not living in the EU you are exempt, however you still have to fill in the form saying so.

The problem most people who work and/live outside the UK is that you need to have an address within the UK to open an account. Not all people have a home in the UK, hence the 'international' account.

malc


EU Witholding Tax

  • z1000000
  • 16/10/08 31/05/09
  • unspecified
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  • Mon, 20/10/2008 - 10:09

Thanks Malc, I know. I live outside the EU and have signed the form. I'm legally allowed not to pay tax.

What I wanted was someone to try and explain in simple terms to the good UK people, about the EU Witholding Tax, and how British and EU resident savers are tax payers, and not tax dodging millionairs.


European Withholding Tax & the Tax Haven Argument

  • Ally
  • 13/10/08 31/05/09
  • unspecified
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  • Mon, 20/10/2008 - 10:33

European Withholding Tax & the Tax Haven Argument

Withholding Tax

The Isle of Man signed up to the EU Withholding Tax Directive. This directive basically means if someone who is resident in the EU opens up a bank account in a another country that is also a signatory of the directive, they will either withhold tax on interest in that account or disclose details of the account to the account holders country.

The Isle of Man signed up to the directive and decided to withhold tax on interest. Therefore if you are resident in the EU and open an account in the Isle of Man you will be taxed at 20% on interest earned. This is exactly the same rate as you would be taxed on interest in the UK and so if you are UK resident and have an Isle of Man bank account you will be taxed exactly the same amount at source. From the 1st July 2011 the withholding tax charge will actually go up to 35% so if you were a UK/EU resident with an Isle of Man account you would have more tax deducted at source than you would in the UK!

If you are non EU resident then you will be paid interest gross and it will be up to you to declare to the country were you are resident for tax purposes. However again this is similar to the UK as if you have a bank account in the UK and can prove you are not liable for UK tax (and not living in the EU) you will be paid interest gross.

Therefore if you were lucky enough to have a UK bank account and went to work in Australia you could apply to have any interest earned on funds in the UK paid gross (i.e. no tax deducted)

Tax Haven

The Isle of Man is not a “no” tax jurisdiction. It does tax its residents the same as any other country. It is just that its higher rate of tax is a lot lower than the UK, 18% as opposed to 40%. However there are countries far bigger than the Isle of Man that have lower rates and in no way could be considered “tax havens”. I know there are people better qualified than me to confirm this but I believe the tax rate in Russia is only 13%. The Isle of Man is just a country that happens to have a low tax rate, it is not somewhere that does not charge tax.

Secondly in the Isle of Man employees and the self employed pay National Insurance just as they would in the UK (it is slightly less as the last couple of increase introduced in the UK were not introduced in the IoM). This means that any years worked in the Isle of Man (as long as the national insurance was deducted) would count towards a UK pension.

Thirdly – The Isle of Man is part of the UK Customs zone and therefore part of the EU Customs zone. In this respect it is different from the Channel Islands that are not part of the UK Customs zone. The Isle of Man therefore has VAT the same as the UK with one of two small amendments (this is unlike the Channel Islands that do not have VAT). The VAT raised in the Isle of Man is pooled with all other VAT raised in the UK and then in line with the sharing agreement between the Isle of Man and the UK the Isle of Man receives a share of these VAT revenues. Hardly the actions of a state that is trying to withhold taxes from the UK!

Finally
I have just find this link which as well as giving good background also gives information on MPs who have a big interest in the Isle of Man and its affairs.

http://www.theyworkforyou.com/debates/?id=2008-07-10a.1608.0


absolutely!

  • Anonymous
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  • Mon, 20/10/2008 - 08:11

absolutely!


Well, I gave them some feedback....

  • brokefirefly
  • 12/10/08 31/05/09
  • a depositor
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  • Sun, 19/10/2008 - 22:11

I went in and added my reaction to that.......hope a few others do the same


WE ARE NOT TAX EVADERS!!

  • Anonymous
  • Offline
  • Mon, 20/10/2008 - 08:12

Yes I did Too!


Caravan park article - see what I said

  • 1log
  • 10/10/08 31/05/09
  • unspecified
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  • Mon, 20/10/2008 - 09:17

While journalism is all about reporting points of interest to the media, kindly refrain from putting a twist on people's story as you have done. They are a couple who have worked hard and earned their money. As far as I am aware the Isle of Man deposits are tightly monitored by the UK government and there is no scope for tax evading or anything of that sort. Would you rather they were unemployed and sat on their backside living off benefits? I know you will as usual 'moderate' my comments because you think the comments page is all about paying lip service to your article. Frankly not. Please look at other sites like the washington post who publish what you say provided it is not defamatory and genuinely encourage active discussion not yet another mini 'nanny state' like moderation. I know you do not have the guts to publish this - just for your eyes only!!!!!

They have not publihed my previous comment which was very moderate and I note they have published none of our fellow depositors' comments. I have a suspicion that their intention is to create negative publicity not public awareness. All the more important we carefully self select ourselves when thinking of giving media our story.


UK comments

  • z1000000
  • 16/10/08 31/05/09
  • unspecified
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  • Mon, 20/10/2008 - 09:40

Isn't it strange that there are 21 mostly negative comments about us on the Caravan Park article,
yet no comments about "Expat" (is it?) Stephen Thomas and Katy Watts on the "Thousands fear for the future... story.

Is it censorship, or the good old UK class system at work?