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Tarne

That 50m from the DED

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14 hours ago, Mr Shoe said:

Here's how it works. With the help of some graphs, I demonstrate to the DED/Spark a seemingly viable business involving (say) Designer Buckets. Can I have a million funding? Thanks.

Pay myself and the other 2 directors £100k a year (indirectly of course). And £30k to cover a couple of school leavers.

3 years later...oops. Business didn't work. Thanks. Bye.

Cost to tax payer: £1 million

Benefit to tax payer: tax and NI on £90k salaries (say £20k?)

Benefit to me and my two mates: £900k

It's supersimplistic, but has the essence.

 

Are you drop shipping the buckets from abroad? If so, the fund will not be open to you.

If not, you’ll be either shipping them here as the finished article from the Far East or manufacturing them from raw materials that need bringing to the Island? Therefore  you will be using the services of the IOMSPCo, local haulier, Post Office etc as well as your sourcing of packaging & stationery & paying for statutory services (heating / telecom / electricity etc). Then you need to ship them off again .........

You will also likely employ a local accountancy practice to audit & prepare your returns, perhaps seek tax advice.

Who knows, you might even need to buy premises ....... who’d have thought. All in addition to your Employer NI contributions, wages & VAT.

I think you might need to rethink your Designer Buckets Business Plan, as it’s shite.

Crack on ............ I want a nice shiny spade with mine. 

Edited by Nom de plume
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@Mr Shoewas talking about virtual designer buckets. 

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8 minutes ago, Declan said:

@Mr Shoewas talking about virtual designer buckets. 

Virtually clueless.

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2 hours ago, Nom de plume said:

Virtually clueless.

Hmm..you're not getting this are you?

It would be a ruse. A way of getting my hands on the funding.

There are no buckets. There never were.

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18 minutes ago, Mr Shoe said:

Hmm..you're not getting this are you?

It would be a ruse. A way of getting my hands on the funding.

There are no buckets cruise ships. There never were.

:thumbsup:

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The Welsh Development Agency operates a similar system to the DED enterprise scheme. However, the WDA reports back to the Welsh Assembly with information regarding loans, grants etc, and information isn't omitted due to 'commercial confidentiality'.  In some respects if the IOMG/DED/DfE decide to invest in a firm which has applied via the fund holder for funding, and IOMG (IOM Taxpayers!) has a stake holding in the business, it can't be hushed up under commercial confidentiality reasoning, as UK HMRC will be involved, via the beneficial register of companies (Which the IOMG was so keen to sign up to). I thought that Tynpotwald was getting a report published yearly regarding the allocation of funds, and a progress report as to the companies, and possible jobs created etc.

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Interesting comment lodged on the iomtoday article which refers to one of the funding recipients, "Nimbus". Which apparently employs a staff of just 3 on-island whilst being involved in NHS matters in the NE of England?

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49 minutes ago, Mr Shoe said:

Hmm..you're not getting this are you?

It would be a ruse. A way of getting my hands on the funding.

There are no buckets. There never were.

You forgot the benefit to the local estate agents/car dealers when said directors are then able to drop a large wedge of cash on a house and transport that they would otherwise never in a million years be able to afford.....living the dream/illusion (delete as appropriate) :)   The IOMG, buying shifty salesmen big houses since....

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Just now, MrFunk said:

You forgot the benefit to the local estate agents/car dealers when said directors are then able to drop a large wedge of cash on a house and transport that they would otherwise never in a million years be able to afford.....living the dream/illusion (delete as appropriate) :)   The IOMG, buying shifty salesmen big houses since....

Oh yes. They'll drop a nice wedge back home in [insert UK county] when their business interests here fail to pan out.

 

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On 07/12/2017 at 12:08 PM, 2112 said:

The Welsh Development Agency operates a similar system to the DED enterprise scheme. However, the WDA reports back to the Welsh Assembly with information regarding loans, grants etc, and information isn't omitted due to 'commercial confidentiality'.  In some respects if the IOMG/DED/DfE decide to invest in a firm which has applied via the fund holder for funding, and IOMG (IOM Taxpayers!) has a stake holding in the business, it can't be hushed up under commercial confidentiality reasoning, as UK HMRC will be involved, via the beneficial register of companies (Which the IOMG was so keen to sign up to). I thought that Tynpotwald was getting a report published yearly regarding the allocation of funds, and a progress report as to the companies, and possible jobs created etc.

In Skelly’s response to the question in Tynwald he stated that “It is the department’s policy not to make public the specific amounts loaned to or invested in individual companies under the Enterprise Development Scheme.”  He also limited the scope of his response to those businesses that had “chosen to have media coverage surrounding the support ...”

This stance does seem different to the intentions actually set out in the EDS guidelines (https://www.gov.im/media/1349316/financial-provisions-and-currency-act-2011-guidelines-february-2016.pdf) - see paras 1.8 and 2.8 (which are identical) and which provide:

Public disclosure

The applicant should be aware that the business name and amount loaned / invested under the Scheme may be published in an annual report prepared by the Department which will be laid before Tynwald, the Isle of Man’s Parliament. This level of information is therefore not confidential to the business concerned. Applicants should also be aware that parliamentary questions may be raised.”

Ok, there is a ‘may’ in there, which it could be argued gives the department some flexibility as to disclosure but nonetheless Tynwald members should be able to ask relevant questions regarding the beneficiaries of what is after all public funding, and should perhaps be entitled to receive a fuller answer than was given.

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I blame Eddie, the master of commercially confidential ! it has become the default position for everything, saves us prolls asking awkward questions !!

Edited by asitis
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