Last PAG public meeting
Presentation by Mark Solly (former IoM Assessor of Income Tax)
Mark's presentation at this meeting attached - We welcome your comments.
[link to original meeting notice comments]
| File | File size | Downloads |
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 Sandy Gorst's speech: 'Taxing Times' | 434 Kb | 981 |
| Mark Solly's presentation | 188 Kb | 1663 |
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Comments
"The repeal of the ARI is a subject that has quite rightly been debated hard over the summer.
Those of us that have listened to the debate should accept that there are some genuine concerns in the community as to the negative impact that the removal of the ARI may have on society,concern s that must and I am sure, will, be addressed. However, it is apparent that we must accept that failure to approve this Order will potentially destabilise the financial services sector
considerably and put at risk both businesses and jobs. That cannot be allowed to happen and I am sure that this Hon. Court will ensure that the appropriate vote is given today and that the Government is seen to act responsibly in the interests of the Isle of Man community.
However, in removing the ARI, surely it is also now incumbent on business and businessmen and women to also act responsibly in the greater interests of the Isle of Man.
Today is not the time for clever accounting practices or get rich quick schemes. This is the time for social responsibility, the time for dues to be paid and time for recognition that we truly are in this together. I would urge, and ask, the Chief Minister and the Treasury to take a tough line against any such businesses or individuals that seek personal gain before social responsibility in
this matter.
The repeal of the ARI, I think, would be good news for the business community and does demonstrate the commitment of Government to work with business, to listen to business and to act with business. We must take this now as a green light to further develop these relationships, seeking to improve all facets of our relationships across Government, not just with the financial
services sector, but with all sections of the community.
We should use the repeal of the ARI, if it is voted through, as the basis for a new trusting society, one where the people are empowered to build the success and one in which social responsibility plays a key part. I see the repeal of the ARI as a golden opportunity for progress forward, but progress hand in hand with the business community and with the people. Let us use
this as a launch pad for a new and invigorated government, empowering business to succeed for the benefit of all".
It means that as from April 2012 the profits a company makes can remain within the company and not automatically 'attributed' to the shareholders. Therefore no tax is payable.
Under ARI the shareholders in a profitable company may have been liable to pay tax.
In abolishing ARI, Treasury has abrogated the right to claim this tax revenue (after April 2012) whilst the profit remains within the company.
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