Craig Brown, director of Ioma Solutions, which provides bespoke financial planning and product packages – and among eight business units under the Ioma umbrella, said offshore jurisdictions may face less aggressive treatment from the Treasury and tax authorities in future.
“Perhaps one thing we can hope for is that the governing parties in the UK might learn from the need for co-operation within a coalition government, and in doing so may apply a similar, less confrontational approach to offshore jurisdictions,” said Brown.
Abusive tax planning
He continued that while there was a need to tackle “abusive tax planning”, a more inclusive approach from the new government – when it is formed – could see the UK working in greater partnership with offshore centres to “eradicate the unacceptable face of tax avoidance, and to ensure proper control and regulation of tax planning within the law.
“[Through this] we might actually see a positive contribution to the national economies of both the Isle of Man and the UK.”
Brown added the tax planning industry had undoubtedly had a tough time under Labour, particularly in the past few years, noting: “We have experienced probably the most direct and sustained challenge to tax planning ever, a move which many suggested might put an end to offshore tax planning.”
And while he was optimistic that there might be a less hostile approach from the UK in future, he nonetheless admitted it would be ‘naïve’ to believe offshore tax planning “will ever be truly accepted.”
