On 6 April 1999 the Isle of Man Government announced a moratorium on the creation of companies with non-residence status. Hitherto, these companies have obtained certainty of exemption from Isle of Man taxation on the payment of a fee of £775 to the local tax authorities.
Deloitte & Touche have long held the view that non-resident companies present opportunities for abuse where there is an unacceptable lack of awareness of the underlying activities; although, in the statement announcing the moratorium, the Government points out that there have been few cases where such companies have been shown to be a vehicle for dishonest business.
Conversely, there will be bona fide instances where, in the context of a global organisation, administrative expediency dictates that director appointments need to be kept in-house.
