Zero-ten 'not harmful', but concern over ARI

An aspect of the Island's Zero-ten business taxation system will come under close scrutiny by European Union finance ministers next week.

A High Level Working Party has been considering the attribution regime for individuals, or ARI.

It's a measure designed to prevent residents 'money-boxing' investments in zero-rated companies, to avoid tax.

The working party has looked closely at the interaction of that piece of personal tax legislation with the Zero-ten business tax system, and it seems to have concluded it may cause 'harmful' effects under the EU Code of Conduct.

The Isle of Man's assessor of income tax Malcolm Couch says ARI is now within the scope of that code (first part of audio file):

EU finance ministers will receive the findings of the working group next week, on the day Treasury Minister Anne Craine presents her first budget.

Zero-ten itself has been judged as not harmful, but Mrs Craine says a long process of scrutiny is under way (second part of audio file):