Does this sound like you?

[DimPrawn]

http://news.bbc.co.uk/1/hi/business/4788966.stm

Sitting in the lounge of her luxurious home on the outskirts of Douglas, Una Haddow sings the Isle of Man National Anthem like a native.
She is actually a Scot and a tax exile.


The Isle of Man government says it is a good place for business

Mrs Haddow and her husband David moved from Glasgow to the Isle of Man 18 years ago because they were fed up paying so much tax to the British government.

"I'll still always be Scottish, but I like the heritage and singing the Manx national anthem" says Mrs Haddow.

"We don't miss the city so much," adds Mr Haddow.

"We miss a bit of the shopping and there is this bit of water between us and the mainland which does make it a little bit tricky to get off and on, but we do get off a fair number of times in the year and we do travel so that's quite a good thing."

The Haddows made their fortune running one of Scotland's leading chains of Off Licences, but here on the Isle of Man they pay no inheritance tax, no council tax and the top rate of income tax is 18%.

That compares with 40% on the mainland of the UK.

Local spending

For people like the Haddows, the tax position is about to get even better.


The Isle of Man government, fully independent of the UK, has just announced a budget that will cap the maximum amount of income tax.

From April no resident on the island will pay more than £100,000 a year in income tax.

In addition the rate of corporation tax is being reduced from 10% to zero.

The idea behind the plan is simple, according to Allan Bell, the Isle of Man's finance minister.

If the Island can attract so-called "high net worth individuals", that is rich people, who will spend their money on the local economy and make up for the shortfall in tax revenues.

"Even if we only end up with a few dozen, it will make a major impact on our economic activity and our government revenues and we will be very happy with that," says Mr Bell.

The Isle of Man faces stiff competition from warmer climes like the Cayman Islands, Monaco and Jersey.

All of these places are keen to draw in wealthy individuals who do not like paying tax.

[threaded]

Actually in Denmark there is also a cap on the maximum amount of tax you pay. Unknown to most Danes and even came as a complete surprise to some of the juniors in the accountants I use (my accountant had words with them: "Read this!", as he thumped a rather large tax book on a table, so I am told.)

[bogeyman]

Unknown to most Danes and even came as a complete surprise to some of the juniors in the accountants I use

No doubt you soon set them right with your exhaustive knowlege of Danish tax law, Threaded

Is there anything you don't know?

[Mailman]

This is far too radical a move for England to adopt, I mean...heaven forbid we make tax simple!

After all, its only fair that we pay our fairshare of tax to keep the unemployed, unemployable and public servants in business!

Mailman

[sasguru]

No doubt you soon set them right with your exhaustive knowlege of Danish tax law, Threaded

Is there anything you don't know?

Yes apparently he's stuggling to understand the meaning of life

[bogeyman]

Yes apparently he's stuggling to understand the meaning of life

Well, I seriously doubt that SG. Don't forget that Threaded had a whole 9 months to work out the meaning of life in his poor mother's womb.

Threaded had already devised his own Unified Field Theory by the time his mothers waters had broken. Sadly, this theory is lost to science as he had nothing to write his equations on except a 'vewy squishy womb lining'.

After a short spell at Harwell as Director of Nuclear Sciences (ages 6-8), Threaded moved on to Magdelen College Oxford where he was awarded the Chair of Professor of Astrophysics - which he unfortunately poohed on during his inaugural address.

Soon bored with this menial post and its lack of challenge, the young Threaded (aged 10) invented the Internet (in a dream one night) as a medium whereby his wisdom could be broadcast to the unappreciative masses - and there he lives to this day.

[NoddY]

...

The Isle of Man faces stiff competition from warmer climes like the Cayman Islands, Monaco and Jersey.
...]

Exactly. The Isle of Man is tapping into a global market of fabulously wealthy* tax dodgers. It can have low taxes because it is not burdened with the costs of production (e.g. heavy infrastructure) nor legacy costs associated with industrialisation.

My argument remains - the only 'fair' tax is one on consumption, the more of the Earth's bounty you consume the more you pay. By transferring the tax point away from income it allows the individual to decide whether to consume or invest - rather than let government do it for you.

* fabulously wealthy = those who don't work i.e. derive income from assets accumulated over several generations and thus have no requirement to sell their labour = none of you lot!

[Denny]

Unequal Opportunities

In the age of political correctness and equal rights between the sexes, shouldn't it now be called the 'Isle of Person?'

[DimPrawn]

It's for rich men and worried sheep only.

[DodgyAgent]

It's for rich men and worried sheep only.

I think you have to be a friendless tightwad to live on the Isle of Man under those circumstances. That's put me right off building my business and becoming a multi millionaire