The Guardian’s website is reporting on the investigation into the Isle of Man and its aircraft registry.

On BBC1’s Panorama programme at 9pm tonight, the island is expected to feature heavily.

The Guardian reports:

’The Isle of Man government approved tax avoidance schemes that have refunded more than $1bn to the super-rich and to multinationals on the import of hundreds of private jets into Europe.

’The Paradise Papers reveal how Manx customs worked closely with the offshore law firm Appleby and the big four accounting firm EY, to approve schemes which have ultimately helped some of the world’s wealthiest individuals reduce import VAT bills to zero.

The arrangements allowed jet owners to claim 100% VAT refunds on the grounds that their jets were part of leasing businesses. What the leak of 6.8m files from the archives of Appleby reveal is that these businesses involved millionaires leasing their own aircraft from themselves.’

The Guardian’s website links to MTTV’s video of Chief Minister Howard Quayle’s press conference in the island for the local media about the issue.

The paper’s report adds:

’Following questions from the Guardian and other media partners, the island, which is a crown dependency and ultimately answerable to the British government, has called in the UK Treasury to oversee a review of the refunds it has issued to 231 jet-leasing companies since 2011. It has now admitted that all of those schemes paid no import VAT, and a total of £790m was refunded – equal to just over $1bn. Many of the jets were paid for in US dollars.

’In a rushed press conference, the Isle of Man’s chief minister, Howard Quayle, said an initial internal review had found no evidence of wrongdoing, but “it is imperative we take steps to defend the Isle of Man’s position”.’

The paper goes on to say:

’The VAT avoidance being conducted on the Isle of Man is not widely available elsewhere in Europe. Most member states, including the UK, would have collected some tax on those imports. Their tax revenues, needed to build airports, staff air traffic control and pay the salaries of customs officers, are potentially being eroded by such jet-leasing schemes.’

The Paradise Papers were put together by a number of media organisations, including the BBC and the Guardian.

Information came from law firm Appleby, which said it had been hacked.https://www.theguardian.com/news/2017/nov/06/isle-of-man-refunds-super-rich-private-jets-paradise-papers