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IOM Announces New Penalties On Employers

Thursday, February 18, 2010

In an effort to improve employer compliance, the Isle of Man has announced legislative changes that will introduce three new penalties on employers: a penalty for ITIP paid late, a late return penalty, and a failure to comply penalty. A tax amnesty was also announced, which will run from April 2010.

The first new piece of legislation – the penalty for ITIP late payments – enables any late monthly remittance to be subject to a penalty. ITIP was introduced in 1987, and is paid by employers on behalf of employees receiving Manx occupational pensions, with income tax assessed on their actual earnings for the year of assessment, rather than the earnings for the previous year of assessment. Under the new legislation, any payment or part payment of ITIP made later than the ninteenth day of each month will be liable to a 5% penalty. Any amount which remains outstanding after a further six months will then be liable to a 5% additional penalty.

The legislation also states that an employer’s annual return that is submitted late will be subject to a civil penalty. Any return submitted later than 30 days from the end of the tax year, or 30 days from the date of cessation as an employer, will be liable to a GBP250 penalty, together with a penalty of GBP50 per day that the return continues to remain outstanding. The legislation introduces a criminal offense if the return remains outstanding for more than six months.

The third penalty will apply to any failure to comply with the Income Tax (Instalment Payments) Act 1974 or the Income Tax (Modified ITIP) Regulations 1987. Any instance of non-compliance with the above legislation will be liable to a GBP250 penalty. This includes the failure to notify that an employer has commenced or ceased to act as an employer.

Lastly, the Treasury has announced that a disclosure amnesty will take place for three months during the tax year commencing April 6, 2010. By concession, the Assessor will waive the imposition of penalties in respect of any voluntary disclosures of previously omitted income made by taxpayers during the period. Interest charges will still apply.

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The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




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