UK Treasury finds Island is not guilty of VAT avoidance

Wed, 16 Oct 2019

A review conducted by the UK Treasury has confirmed that there is 'no evidence' the Isle of Man has dealt in VAT avoidance.

In a statement the UK Government said: 'Following a series of allegations of VAT avoidance in late 2017, the Isle of Man Government invited HM Treasury to carry out a review of its VAT rules and procedures regarding aircraft and yacht importations.

'The review, published today (16 October 2019), looked into the application of aircraft and yacht VAT rules in the Isle of Man and whether its rules and procedures enabled importation (e.g. by high net worth individuals) of private jets into the EU without paying the correct amount of VAT. Publication today concludes over a year of intensive investigation by VAT administration experts into this issue.

'The report found that UK and EU VAT law had been correctly implemented in the Isle of Man and allegations of widespread VAT avoidance on aircraft and yachts were not upheld.'

The review follows numerous allegations made in the 2017 Paradise Papers.

 

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