The European Union has been pressurising the Isle of Man and the Channel Islands to abandon the system whereby the majority of businesses pay no tax on their income. EU member states consider the system to be a ‘harmful tax practice’ and the EU’ Code of Conduct Group plans to review all the crown dependencies zero-ten regimes in September.
Jersey Finance technical director Heather Bestwick said the government must “think carefully before any alternatives to zero-ten are considered”.
Professionals in the Isle of Man are similarly urging Government not to move quickly, but to await developments and only make changes if they are unavoidable and already integrated by competitor jurisdictions. There are not perceived to be any advantages in being first to adopt a less competitive stance on business tax.
We will continue to provide updates on any developments as they occur.