p001front.qxd (Page 1) - Isle of Man Today

More documents

Recommendations

Info

6 Businessupdate Isle of Man Examiner, March 2006 ISSUE MARCH focus TAX THE BUSINESS UPDATE FORUM GREG JONES JM060227-37 MICHAEL SHIMMIN JM060227-40 RICHARD CORRIGAN JM060227-49 MARK SHIMMIN JM060227-59 F u r n i t u r e D i r e c t If you didn’t buy direct - you’ve probably paid too much CADIZ Full Leather 3 + 2 Group £699 Maldini Full Leather reclining sets Reclining Armchair £499 Reclining Two-Seater £599 Reclining Three Seater £699 IMMEDIATE FREE DELIVERY and all year round low prices Leather Suites from £699 to £3,000 OPEN Monday to Friday 9am - 6pm Saturday 10am - 5pm Sunday 2pm - 5pm The Upper Showroom, Demesne Road, Douglas. Tel: 616997 FROM PAGE 5 course, because of good revenue flows, we can end up with a zero rate of corporate tax across the board that would be wonderful. In the meantime, we need to have revenue flow and this is a starting point. We will continue to look at how we can evolve direct taxation in the Isle of Man. MARK SHIMMIN: I wouldn’t want people to think we have talked about the tax strategy for a number of years and it is put to bed. We have to continue. What we have built up is an expectation that we will be more clear and open on what we are trying to do in the future. It will be a developing issue regarding tax. JONES: Having said that, if it is always changing, it could be unstable. There needs to be continuity. People do like stability but they will put up with change if the change is good. What is the zero corporate tax strategy From April 6 2006, the general rate of corporate income tax in the Isle of Man will be zero per cent. The zero percent rate will apply to the profits of accounts that form the basis of a company’s 2006-07 income tax assessment. It will apply to most businesses, although banks are not included. In theory, this means that if businesses are paying less tax, the government will lose revenue. However, this revenue should be replaced by attracting new businesses to the Island as a result of an attractive zero tax strategy. The Island can also more easily afford a zero rate because most government revenue is generated by indirect sources, particularly VAT, which accounts for well over half of Government finances. The zero rate applies to businesses not individuals. What is tax spent on Tax is spent on delivering a huge number of public services including healthcare, social services, pensions and renewing public CORRIGAN: Internally, the banks are looking at our business and how we can most efficiently operate those businesses within the new tax environment, while bringing new business to the Island. The IoM Government has delivered on its commitment but the larger groups won’t chase a sort of short-term tax arbitrage position. They will be looking much more long term. Having a zero tax rate in certain aspects of banking business may not in itself be sufficient. There are many other advantages for banks doing European business operating out of Dublin, for example, and being happy with the tax position on that. We have looked at other parts of the business in the group and how we could best fit those into the Isle of Man. It is not only about the tax position. There has to be a longer-term reason to domicile businesses in a certain jurisdiction. JONES: In relation to the access to markets issue, there is not much we can do in the short term. We have to make the immediate environment as attractive as possible. ‘ People do like stability but they will put up with change if it is for the good. — GREG JONES Taxing issues made simple infrastructure, for example, sewage improvements, new water treatment works and the incinerator. It would include spending on capital building projects, for example, the new prison at Jurby and improvements to schools. What is the £100,000 cap on personal tax A cap of £100,000 per annum on personal income tax will be introduced for the 2006- 2007 year of assessment, commencing on April 6, 2006. This will be available for both current residents and new residents. This will help to attract wealthy individuals to move here, many of whom could be entrepreneurs who may bring new business to the Island. What is the new corporate vehicle A new Manx corporate vehicle is planned which should make the Island more attractive for forming new companies. This means it would be simpler to set up a business here than in other competing jurisdictions such as Jersey or Guernsey.
Isle of Man Examiner, March 2006 Businessupdate 7 TOPIC The ever-expanding Young Enterprise programme is looking to equip young people with the knowledge needed to balance their books. Angela Gregory reports Enterprising move to assist young people STRUGGLING with finances after leaving school, whether it’s in a new job or at university, is an art form. It’s usually a question of taking the hard route, which inevitably features plenty of shocks along the way. Often, the consequences of those first few years out on your own can leave a lasting debt which is hard to shake off. But if you had been learning how to control the purse strings from an early age, plus exploring your place in the world, perhaps life would have been that little bit easier The ever-expanding Young Enterprise programme is attempting to arm young people with that very kind of information. Ian Galloway, chief executive of Young Enterprise Isle of Man, explained: ‘There’s a tremendous amount happening in terms of the need for and the recognition of the need for enterprise education. ‘In the UK, enterprise education has been given quite a boost. The Department for Education and Skills has said every student will receive five days of enterprise education a year. ‘Research coming out of Europe has said we are only going to grow if we do develop entrepreneurs, if we do provide our students with the background and the skills and knowledge to start their own business or to be entrepreneurs. ‘They need the knowledge and skill and also the willingness to take risks. ‘Our society tends to be risk-averse. We are encouraging ourselves and our young people to avoid risk. ‘The advantage of Young Enterprise is that it gives students a chance to take risks without the consequences they would have if they were in the business world so they don’t lose their homes or their families.’ He added: ‘There’s a lot happening with Young Enterprise. There’s been a lot of changes in the Island since 2003. ‘We have slowly lost our connection with the UK and we have become an independent member nation of the overarching organisation which is Junior Achievement Worldwide. ‘We became the 40th member of Junior Achievement Young Enterprise Europe at the beginning of 2005 and that’s when I was appointed chief executive. ‘We have grown rapidly from running programmes for about 200 students in 2003-2004 to last year having 985 students. This year we’ll have 2,000 students.’ Primary schools and secondary schools are involved. For the younger pupils, the programme involves a series of six units encouraging youngsters to look at themselves, their families, the community, cities, nations and the world. At the secondary stage, units become much more business orientated. ‘What I’m trying to do is to bring up the emphasis on enterprise education and what we call the economics of life,’ said Mr Galloway. ‘The primary programme is about a young child seeing him or herself in relation to the rest of the world, looking at how a child fits into a community, how a member of the family works to pay taxes, how a community works by having police and services. ‘It’s not just about money, it’s about responsibilities, it’s about attitude, it’s about understanding how a person fits in and how what one does now will affect us in the future. ‘I think this type of learning is important, there’s a growing need for it and I think there’s a growing realisation there’s a growing need for it.’ www.young-enterprise.org.uk CUBBIN & BREGAZZI OFFICE FURNITURE FOR BUSINESS & HOME Bespoke solutions to deal with all sizes all I.T equipment. Full interior design service available. Tromode Estate • Douglas • 617788
Page 1 and 2: Businessupdate Isle of Man Examiner
Page 3 and 4: Isle of Man Examiner, March 2006 Bu
Page 5: Isle of Man Examiner, March 2006 Bu
Page 11 and 12: s to MARCHspecialreport EDUCATION i

p001front.qxd (Page 1) - Isle of Man Today

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?