IoM Urges Taxpayers To Use Tax Amnesty
by Jason Gorringe, Lowtax.net, London
27 June, 2016
The Isle of Man's Treasury Minister, Eddie Teare, has warned that time is running out for those taxpayers who have failed to declare income, estimating that about GBP4m (USD5.3m) remains undeclared.
Teare said the growing international network of automatic tax information exchange agreements will identify income received by island residents in other jurisdictions, and he gave notice that taxpayers have only three months left to voluntarily disclose any irregularities without incurring penalties.
Teare said that since April this year over GBP1.8m of undeclared income has been identified, on which additional tax, interest, and penalties of more than GBP300,000 has been collected. A further GBP2.6m of undeclared income has already been identified and will be the subject of inquiries by the Income Tax Division shortly.
The Isle of Man expects the sources and amount of taxpayer information held by the Assessor of Income Tax will increase significantly this year when information will be received automatically on financial accounts held by Isle of Man resident taxpayers in the United States and the United Kingdom.
Penalties will apply for undeclared income, and will also apply to voluntary disclosures from October 6 this year.
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