The Isle of Man Income Tax Division has published a consultation paper outlining proposals for the introduction of a new taxation regime for certain domestically sold investment products.
Published on behalf of the IoM Treasury, the ‘Taxation of Investment Products’ consultation paper aims to generate debate and gather industry views to assist with drafting new legislation which is aimed at clarifying the taxation of some investment products sold to IoM residents.
The new legislation is primarily concerned with the taxation of insurance bonds and roll-up funds and will aim to definine which products will be subject to income tax and which will not and when and how an income tax charge will be raised.
Bryan Low, managing director of IoM-based, Acuity Consultants, says the proposals are aimed at ‘tidying-up’ the IoM’s tax rules.
"There are certain aspects of the island’s tax which are quite far behind the mainland and this process will really be seeking to modernise those pieces of legislation," he said.
Any proposals should be submitted to the IoM by 29 January 2010 and those wishing to do so can click here to view the consultation document.