Fears over new tax threat to Isle of Man

Posted 14/01/2012 - 22:11 by anrigaut

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2012-01-10 (All day)

" MOVES by the UK Treasury to introduce a general anti-avoidance tax rule could impact negatively on the Isle of Man.

That’s the view of KPMG director Greg Jones who was responding to the announcement by Deputy Prime Minister Nick Clegg that he hoped there would be progress on an anti-avoidance tax rule in the Budget. ...
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KPMG island director Greg Jones said it was by no means a foregone conclusion that we would get a general tax anti-avoidance rule (GAAR) in the near future.

But he added: ‘If we did, however, there’s no doubt that it would impact negatively on places like the Isle of Man.

‘Even if the GAAR were targeted as narrowly as the working party report recommends, in my view it would strike out a number of (what has to be admitted are) fairly contrived tax planning arrangements I am aware are promoted from the island.

‘There may be some work for tax practitioners in advising whether a particular planning idea falls within the GAAR’s scope, but on the whole I think we’d lose a certain amount of the business currently being undertaken by some niche service providers.’ "

See also Richard Murphy's blog:
"KPMG in the Isle of Man admits the island may be used for egregious tax avoidance" at
http://www.taxresearch.org.uk/Blog/2012/01/14/kpmg-in-the-isle-of-man-ad...