On 6 April 1999 the Isle of Man Government announced a moratorium on the creation of companies with non-residence status. Hitherto, these companies have obtained certainty of exemption from Isle of Man taxation on the payment of a fee of £775 to the local tax authorities.
Deloitte & Touche have long held the view that non-resident companies present opportunities for abuse where there is an unacceptable lack of awareness of the underlying activities; although, in the statement announcing the moratorium, the Government points out that there have been few cases where such companies have been shown to be a vehicle for dishonest business.
Conversely, there will be bona fide instances where, in the context of a global organisation, administrative expediency dictates that director appointments need to be kept in-house.
It is hoped that, in bringing forward corporate service provider regulation, a means can be found whereby the non-resident company regime can continue to exist within an enhanced framework that provides for accountability to the regulators by those responsible for the administration.
If you would like further information on the above topic please contact Bruce Taylor, Deloitte & Touche, 66/67 Athol Street, Douglas, Isle of Man, IM99 1XJ. Telephone + 44 1624 672332; Fax + 44 1624 672334
Authorised by the Institute of Chartered Accountants in England and Wales to carry on Investment Business in or from the Isle of Man and in the United Kingdom