Isle Of Man Respond To VAT Allegations

October 27, 2017

The Isle of Man Government has asked HM Treasury to conduct an assessment of the practice for the importation of business jets due to “allegations of abusive VAT avoidance made by media associated with the International Consortium of Investigative Journalists [ICIJ].”

Appleby Law Firm Confirm ‘Data Security Incident’

This follows after major law firm Appleby confirmed they received enquiries from the International Consortium of Investigative Journalists [ICIJ] and media organisations in relation to “documents that journalists claim to have seen and involve allegations made against our business and the business conducted by some of our clients.”

The law firm confirmed they had a “data security incident last year which involved some of our data being compromised,” and said they “are disappointed that the media may choose to use information which could have emanated from material obtained illegally and that this may result in exposing innocent parties to data protection breaches.”

The International Consortium of Investigative Journalists [ICIJ] — whic  is most well known for their reporting on the ‘Panama Papers’ — states it “is a global network of more than 200 investigative journalists in 70 countries.”

As of this writing, the ICIJ has not yet published any material emanating from the data, however according to a report by the Daily Telegraph, a “global consortium of left leaning media organisations is preparing to release the information in the coming days.”

According to their website, Appleby has offices in the “key offshore jurisdictions of Bermuda, the British Virgin Islands, the Cayman Islands, Guernsey, the Isle of Man, Jersey, Mauritius, and the Seychelles, as well as a presence in the international financial centres of Hong Kong and Shanghai.”

Isle of Man Statement

The official Isle of Man Government said, “The Isle of Man Government has invited HM Treasury to conduct an assessment of the practice for the importation of business jets into the EU through the Isle of Man, with a focus on the VAT treatment of aircraft leasing arrangements.

“The assessment by HM Treasury is being instigated as a result of allegations of abusive VAT avoidance made by media associated with the International Consortium of Investigative Journalists [ICIJ]. It will supplement a review already underway by the Isle of Man Treasury, Customs & Excise Division.

Isle of Man Chief Minister Howard Quayle said: ‘The VAT treatment of the importation of aircraft into the EU is a highly technical and complex area in which the Isle of Man follows the same policy, laws and rules as the United Kingdom.

“The Isle of Man Government works closely with HMRC and holds quarterly governance meetings on a range of VAT issues. In light of the claims made by the ICIJ, we have asked HM Treasury to look at all elements involved in the process of the importation of business jets via the Isle of Man into the EU.’

He added: ‘The Isle of Man is a well-regulated country with a proud reputation for world-class service and compliance with international standards on tax and transparency. Like all responsible members of the global community, we take allegations of this nature extremely seriously.

“The ICIJ has so far rejected our repeated requests to provide written evidence to support their claims. During the course of our own ongoing review, we have found no evidence of wrongdoing or reason to believe that our Customs and Excise has been involved in the mistaken refunding of VAT.’

Treasury Minister Alfred Cannan commented: ‘The assessment by HM Treasury announced today further demonstrates that the Isle of Man is committed to protecting its reputation as a leading international business centre. The Isle of Man is not a place that welcomes those seeking to evade or abusively avoid taxes.’

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  1. Onion Jiuce says:

    Tho, doth, protest, tooooo much!