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Mark Solly At The Pag


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I notice that the Australian Government (which I think is socialist in its make up) have real and growing concerns about losing their shipping sector. After a major review it is interesting to see what they have announced as the main plank of their response. On the 9th September 2011, Sam Wills, their Minister of Infrastructure and Transport announced that the Australian Government intend to move to zero corporation tax for the shipping industry by July 2012.

Chris

 

This just proves the point that tax competition is everywhere, and that our position in the Island is under constant threat. If Australia makes this move, why would multinationals like Schulte Group, Döhle Group etc. want to be in Douglas?

 

Has your manifesto any commitments on taxation matters?

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The UK businesses not paying Tax here is something that really gets my goat, I can't understand why, (especially after the VAT agreement has been made "fairer"), the IOM Government is not looking at this lost source of revenue, (but then maybe it has).

 

Madness in a mirror

 

I understand that we have to show the EU that our standard rate is 0% to be allowed to have that rate at all. Malcolm Couch has said at a number of presentations that this is why we can't extend the 10% rate any further than the banks and property companies. I make the same point as above, therefore, the bigger picture is 0/10, and we have to accept some 'not quite right' aspects of the rest of the system to keep 0/10. Couch's comments have proved to me, at least, that he has reviewed this and accepted that no change can be made just now.

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I notice that the Australian Government (which I think is socialist in its make up) have real and growing concerns about losing their shipping sector. After a major review it is interesting to see what they have announced as the main plank of their response. On the 9th September 2011, Sam Wills, their Minister of Infrastructure and Transport announced that the Australian Government intend to move to zero corporation tax for the shipping industry by July 2012.

Chris

 

This just proves the point that tax competition is everywhere, and that our position in the Island is under constant threat. If Australia makes this move, why would multinationals like Schulte Group, Döhle Group etc. want to be in Douglas?

 

Has your manifesto any commitments on taxation matters?

 

yes - under the heading 'Government Income in a Turbulent World' (page 17) I make the following statement:

 

.................This all presents tremendous challenges for our Treasury team but it is extremely important that it applies a sure and steady hand throughout this turbulent period ensuring commercial confidence is not undermined. I therefore support the removal of ARI and the retention of the zero/ten regime............

 

Page 19 deals with the Customs and Excise Agreement

 

If you wish you can read it for yourself on chrisrobertshaw.com (the best way to read it is to click on the pdf centre right on the home page)

Edited by Chris Robertshaw
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If you want something potentially fairer, have a look at Nick Shaxson's piece in this section of the Guardian - http://www.guardian.co.uk/commentisfree/2011/sep/19/vince-cable-speech-liberal-democrat-conference.

Thanks for that but it comes up for me as a dead link

 

 

This just proves the point that tax competition is everywhere, and that our position in the Island is under constant threat. If Australia makes this move, why would multinationals like Schulte Group, Döhle Group etc. want to be in Douglas?

 

Has your manifesto any commitments on taxation matters?

Hope this link works - more details of the Australian changes.

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The disparity is widened further by national insurance. Most of the companies we are talking about contribute zip (dividends don't attract NI and the directors of said cos often keep their salaries below the NI threshold). Whereas most employees pay circa 10% of their pay to the govt in N.I.

 

 

Yes their 'clever accountants' tell them to do this sort of thing - paying themselves the minimum wage so they don't have to pay NI -how low can you get?

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Thanks for that but it comes up for me as a dead link

 

Nicholas Shaxson: 'A land value tax would be revolutionary'

 

Most people will welcome Vince Cable's focus on narrowing Britain's horrendous wealth and income inequalities. What stands out for me, here, is what he said about vast wealth disparities rooted in "inflated property and land prices".

 

Cable is known to favour a "mansion tax". We don't yet have full details of what he means by this, but it appears to be a distorted version of something known as a Land Value Tax (LVT) – where you tax property according to the value of the land it stands on. An LVT would be a massive, revolutionary opportunity for Britain to transform itself for the better. It is one of the most efficient, fair, clever and progressive taxes that exists.

 

As Cable notes, such a tax rewards effort and taxes unearned windfalls that lie behind so much of Britain's current inequalities. The Crossrail project, for instance, will provide a massive, unearned windfall for City businesses in the form of higher property values for those who own property in areas that benefit from the better transport links. This is what Martin Wolf of the Financial Times calls "the reward of owning a location that the efforts of others have made valuable". Apply the right LVT, and those who reap this manna from heaven will effectively be the ones who pay for it, letting other British taxpayers off the hook for a project that doesn't benefit them.

 

An LVT falls most heavily on the wealthy. Not only that, but it would capture a huge slug of City business that is based on inflated property speculation: a clever, fair and economically efficient way to curb the power of Big Finance. What is more, it doesn't matter if that Chelsea mansion is owned by an anonymous company based in the British Virgin Isles – as long as you have access to Google Maps and some bailiffs, you can levy the tax. It is offshore-proof.

 

Cable hasn't made clear enough what his mansion tax entails, precisely. He should sell it as a tax on unearned wealth, and implement it as a classic LVT.

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I was there too. Sat in the balcony. I thought it was going to be a wasted trip but a visit to the Manx Legion is always worth it for the Boddingtons. Nice price too.

 

The question about the PS/CS possibly being 40% too bloated etc. was a good question but I think it needs to be asked at a political meeting. Mark Solly would have made it quite clear from his earlier answers that he wasn't going to be there to answer questions as to his political opinion. Even the PAG guy at the end asked him about FOI and a popularly elected LegCo, and was given a dignified rebuff.

 

One thing that came clear to me was that we should stop forever comparing ourselves to the UK and just look at ourselves for what we are and in our own tax world. The example he used was that OAPs in the UK can travel anywhere on a bus for free, the whole country if they pleased, how do you equate that sort of thing with what the Isle of Man has to offer. Was that a former MP that asked questions? (in the cheap seats at the back) He had the same name as a former MP.

 

The presentation from some chap with figures that proved we don't need to pay any tax at all might have been ok but I chose those minutes to savour the beer. It was all either above my head or he was off his head.

 

Loads of candidates there trying to make a name for themselves. They should always remember that it's best to STFU and let people think you are a fool rather than ask something stupid and confirm it. Even better, don't attend at all.

 

Bill Malarkey wasn't there.

 

Who was there? Alf Cannan, the Malew & Santon Hanson, Richard Kissack, Paul Moulton, Brenda Cannell, John Karran, David Talbot, Middle Lib Van chap and probably some more.

 

I enjoyed the evening. No chance for a heckle though. I'll save that for the requisition meeting on Wednesday.

 

See you guys there.

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I wouldn't trust the isle of Man Government on many things - but I would trust them to try to stay ahead in the offshore tax business. It's this island's bread and butter and no replacement industry sector is in the offing.

 

We have to remember that we are in competition with places like Dubai:

 

Dubai Looks To Develop Relationship With China

 

“The Chinese economy has been one of the fastest growing in the world, and has been one of the biggest trade partners to the UAE. This MOU reinforces the economic ties between the UAE and China, and encourages the financial and business exchanges between both economies. This MOU will also give investors opportunities to invest in two rapidly growing countries. We look forward to achieving our mutual goals through this agreement.”

 

We need to compete internationally to survive and the PAG presentation was, frankly, too insular in it's outlook. The very last thing we want to do is increase headline tax rates for any reason. This island needs to be seen as stable in it's taxation or else investors and others will start to question whether we can maintain our tax base. The most important thing is to keep people employed in the finance sector and, if at all possible, grow it. With a reduction in the size of Government on it's way there will be precious little other employment available.

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We need to compete internationally to survive and the PAG presentation was, frankly, too insular in it's outlook. The very last thing we want to do is increase headline tax rates for any reason. This island needs to be seen as stable in it's taxation or else investors and others will start to question whether we can maintain our tax base. The most important thing is to keep people employed in the finance sector and, if at all possible, grow it. With a reduction in the size of Government on it's way there will be precious little other employment available.

Exactly so.

 

Going back to Chris Robertshaw's posts earlier, what will we do to protect - eg - shipping (assuming that the subject of this thread doesn't derail 0/10 completely)?

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The Mark Solly talk for the PAG was flagged up as being about how the Island's tax strategy was increasingly becoming more inequitable, in particular with the ending of the ARI and with nothing to replace it. This was the talk we were expecting and that's what we got. What's your view on our increasingly inequitable tax strategy with a VAT black hole to fill ? I haven't heard any of you address that on this thread yet and I think it might open the discussion up a bit.

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The Mark Solly talk for the PAG was flagged up as being about how the Island's tax strategy was increasingly becoming more inequitable, in particular with the ending of the ARI and with nothing to replace it. This was the talk we were expecting and that's what we got. What's your view on our increasingly inequitable tax strategy with a VAT black hole to fill ? I haven't heard any of you address that on this thread yet and I think it might open the discussion up a bit.

Increasingly inequitable and two-tier are lovely slogans which the media eat hungrily, but I'm not sure they mean anything. Equity is fairness, and I am not aware of any tax system in the world which is any fairer than ours. It has defects no doubt, but isn't fundamentally unfair.

 

The government has screwed up on VAT, and I have said elsewhere that some people should consider their positions as a result. On 0/10 the government has done almost everything right. Perhaps it is down to the policy advisers. Raising taxes to fill the VAT hole is a path to ruin, IMHO.

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I notice that the Australian Government (which I think is socialist in its make up) have real and growing concerns about losing their shipping sector. After a major review it is interesting to see what they have announced as the main plank of their response. On the 9th September 2011, Sam Wills, their Minister of Infrastructure and Transport announced that the Australian Government intend to move to zero corporation tax for the shipping industry by July 2012.

Chris

 

This just proves the point that tax competition is everywhere, and that our position in the Island is under constant threat. If Australia makes this move, why would multinationals like Schulte Group, Döhle Group etc. want to be in Douglas?

 

Has your manifesto any commitments on taxation matters?

The centrepiece of the Australian package is the tax exemption, which will broadly apply to anything to do with the operation of the ship. But maritime-related activities such as crew management and legal services will not be tax exempt.

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The Mark Solly talk for the PAG was flagged up as being about how the Island's tax strategy was increasingly becoming more inequitable, in particular with the ending of the ARI and with nothing to replace it. This was the talk we were expecting and that's what we got. What's your view on our increasingly inequitable tax strategy with a VAT black hole to fill ? I haven't heard any of you address that on this thread yet and I think it might open the discussion up a bit.

Did you see that Treasury had an ARI statement in the Indie on 22 Sep, but that IOM Newspapers didn't put it on the website? What is Richard's Butt up to? The statement made a solid defence of why we need to get rid of ARI, and so should be more widely seen.

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