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Changes to Taxation 13 July 2004 Treasury has made further progress towards the programme of change under the
Taxation Strategy and its ability to meet
international commitments. The Income
Tax (Amendment) Bill 2004 has now received Royal Assent and was signed at the
June sitting of Tynwald.
The Act includes measures to:
- Extend the current year basis of assessment to all income received by
individuals and other non-corporate taxpayers, including income from
investments, self-employment and other sources. (Income from employment is
already on a current year basis).
- Introduce a payment on account system for those people who do not pay their
annual income tax liability through the Income Tax Instalment Payment or Sub
Contractor’s Deduction Schemes.
- Allow more time to make a tax return and, after a period of education,
introduce a late filing penalty system.
- Provide the Assessor with additional powers to obtain information, including
documents and information required to enable the Island to comply with its
international commitments.
- Prevent the avoidance of Manx tax through the use of company loans to take
advantage of the differential between corporate and personal income tax rates.
Treasury Minister Allan Bell MHK said:
"One of the most significant changes that will impact on individuals on the
Island is the move to a current year basis of assessment including the
introduction of a payment on account. I have asked the Assessor to ensure that,
during July, every household on the Island receives a leaflet giving information
regarding these changes. The leaflet will also give details of further guidance
notes that will be available on request from the Income Tax Division.
"The change to current year basis of assessment and the introduction of the new
payment on account system will be achieved this year. When the next income tax
return form is issued in April 2005, people will have a longer period to
complete it - there will, however, be a new late filing penalty system. Before
this system is introduced, a full education programme will be conducted to
ensure that everyone understands their responsibilities with regard to their
income tax affairs.
"As I said when I introduced this Bill last year, the people of the Isle of Man
are entitled to an income tax system that works as efficiently as possible and
collects all the money that is owed to public funds. Manx income tax rates are
low compared with other countries and it is not unreasonable to expect payment
of what is due. It is also important for the reputation and stability of the
Island that we have the ability to honour our international commitments." More stories >>>
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