Buck's Road, Douglas
Isle of Man IM1 3TX
+44 (0) 1624 685400
The purpose of this Practice Note is to provide further details of the 'tax remission scheme' recently announced by the Treasury Minister, Right Hon. Allan Bell MHK. The Scheme, which will be similar to that which ran successfully in 1994 is a pre-cursor to a drive on non-compliance announced in the Treasury Minister's recent Budget speech.
The United Kingdom Chancellor has introduced an incentive scheme in his April Budget aimed solely at late registration for Value Added Tax purposes. The Isle of Man scheme to be called the Penalty and Interest Remission Scheme (PAIRS) is far more wide ranging covering VAT, Customs and Excise, Income Tax and National Insurance.
This Scheme will operate with immediate effect to 31st October 2003. It will provide an opportunity for clients who whether in error, by mistake or by deliberate omission have;
to regularise their VAT, Customs and Excise, Income Tax and National Insurance affairs without the fear of prosecution or the imposition of penalty and interest charges which normally apply in cases of non-compliance.
The Scheme will only apply to voluntary disclosures. Any errors, under declarations or omissions discovered by officers during the course of their duties whilst the scheme is in operation will be treated in the normal manner.
For Income Tax purposes the Scheme permits the following to be disclosed or submitted without the imposition of penalty and/or interest charges;
I Q Kelly
Assessor of Income Tax
NOTE: This practice note is intended only as a general guide and must be read in conjunction with the appropriate legislation, it does not have any binding force and does not affect a person's right of appeal on points concerning their own liability to income tax.
Comments for suggestions for improvement of issued Practice Notes and suggestions for future Practice Notes are always welcome.