Positive Action Group - Possan Jantys Jarrooagh

Open, accountable government, rigorous control of public finances, and a fairer society for all.

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Meeting notice: The Tax Gap - is it fair?

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PAG public meeting

The Tax Gap - is it fair?

A talk by Mark Solly

(former IoM Assessor of Income Tax)

7.30 p.m. Monday 19th September 2011

Manx Legion Hall, Douglas

Although most of us dislike paying our taxes there is a general acceptance that they are necessary to provide essential services from which we all benefit.

With VAT receipts reduced it may be that the next government will consider increasing income tax from the existing standard rate of 10% and the higher rate of 20%.

"A tax should be seen to be fair in its impact and, broadly speaking, a persons contribution to tax revenue should be proportionate to their income", according to the Treasury Minister.

Yet her budget decision to abandon the Attribution Regime for Individuals ( ARI) as from April 2012 may mean a reduction in tax take and further develop a two-tier tax structure which she admits was created with the introduction of a tax cap in 2006.

The important issue of tax fairness will be considered at the next Positive Action Group (PAG) public meeting when the guest speaker will be former IOM Assessor of Income Tax and author, Mark Solly.
Mr Solly is concerned that we are moving to a system of income tax which bears more heavily on the least well off in our community and that little attempt has been made to explain in plain language the likely consequences of the proposed changes.
PAG considers this an important Election issue about which voters and all candidates need to be aware - come along, hear the argument and make your own views known!


+1 #4 EU Code of Conduct Group approvalGuest 2011-09-14 15:39
0 #3 Is it time that taxes need to be raised?Guest 2011-09-12 10:13
This was the opening question posed to all 6 Ramsey candidates on the Politics Show North West 11.09.11 - about 17 minutes into the programme.

Craine - I don't think personally that it's time to raise taxes again...

Bell - If zero rate was to go or the 10% was to be enhanced in any wider way would lose a substantial part of the economy....

Watch the programme on your computer (only until 18.09.11) -

0 #2 Two-Tier Tax StructureGuest 2011-09-11 16:19
Extract from Treasury Minister's Answer Question 12 Tynwald 12th July 2011

The Speaker: Madam President, notwithstanding the requirement to comply with European directives in respect of Zero-10, is there not a real danger that unless provision is made, we will be entering, in the Isle of Man, a two-tier tax structure, where the wealthy will be able to roll up income within a company and the ordinary earner will go on paying tax as before, and clearly a two-tier structure like this is going to be blatantly unfair and undesirable?

The Treasury Minister: I am not sure that I agree with the Hon. Member. I believe that we are trying hard to prevent a two-tier structure, but, obviously, we have a tax-cap situation in place at the present time which, in itself, introduces a two-tier structure.
I think what we are trying to do is to produce a fair tax regime for all the residents in the Isle of Man that will avoid the possibility of rolling up income.
0 #1 Aboliition of ARIGuest 2011-09-11 15:43

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