Following the review carried out by the EU Code of Conduct Group on Business Taxation (“COCG”) and the subsequent release of the proposed Income Tax (Substance Requirements) Order 2018, there has been an increase in the number of businesses looking to restructure and re-domicile companies to the Isle of Man.
The Isle of Man currently has a central register of Ultimate Beneficial Owners (“UBO”) of Isle of Man registered companies.Each company has a Nominated Officer or Corporate Service Provider (“CSP”) charged with keeping the details of the company’s UBO(s) up to date on an annual basis using an online portal.
The Isle of Man is proud of its innovative and entrepreneurial spirit that, over the years, has been achieved by individuals and businesses identifying what the Island is good at, building a good rapport with the local Government, and supporting each other with new ideas to accommodate growing businesses that will benefit the Island.
I have been asked numerous times since June 2016 what impact Brexit will have on the Isle of Man and the businesses that operate here. Perhaps not surprisingly, nearly three years after the referendum it remains difficult to give an answer of any real substance, but I thought it might be useful to provide some background to the Island’s current position, together with a few of the differing ideas as to what the future might hold.
The Isle of Man is situated in the middle of the Irish Sea and is approximately 32 miles long by 12 miles wide with a population of almost 86,000 people. The Island is not part of either Great Britain or the UK but is known as a “Crown Dependency”. It is self-governing and is independent in all matters except for foreign relations and defence. The Head of State is the Queen who holds the title “Lord of Mann”.
For businesses operating in the Isle of Man, the budget showed promising signs that the Island’s economy is doing well which can only benefit marketing our jurisdiction. There is welcome news for businesses who have struggled to recruit staff in recent years with signs that the economy is growing, and suggestions the Island’s population is increasing. I’m sure most businesses will be hoping this news and other measures introduced in the Budget will attract a new pool of talent to the Island.
The last few years have been extremely interesting for the Isle of Man’s latest Government, and there are a number of changes coming into effect this year that will ensure the challenges keep coming during 2018. The Island’s Government needs to look ahead at this New Year positively to build on what it has done well over the last few years whilst always looking to improve and evolve.
This year’s Budget was presented to the Manx people by new Treasury Minister, Alfred Cannan MHK, which was no doubt a difficult task. He announced this budget intending to help the working families and individuals who have had to tighten their belts over the past few years.
The Isle of Man witnessed its fair share of intriguing events during 2016 but the Island must now look ahead and take advantage of what 2017 has to offer. In these, seemingly ever, challenging times, here are three things the Isle of Man Government must do in 2017...
It was during my visit to Washington to attend the annual TAG Alliance conference that I started to think about the reasons people move from their country of birth to find a better life. It was the week prior to the United States Presidential election - one of the candidates campaigned to “Make America Great Again”; the other was campaigning for America to be “Stronger Together”. The local lawyers and accountants that I spoke to seemed to be unsure how they had been left with the choice between two uninspiring candidates.