A new VAT penalty comes into force on the Isle of Man from 1 March 2018. The penalty will apply to businesses and company officers when they knew, or should have known, that their transactions were connected with VAT fraud.
The new penalty will:
be a fixed rate of 30% for participants in VAT fraud;
apply to businesses but can also be applied to company officers;
give the Treasury the option to name those that participate in the fraud; and
not include reductions for disclosure.
The IOM penalty corresponds to the equivalent UK measure in Finance (No 2) Act 2017 and is brought into effect by the Value Added Tax Act 1996 (Amendment) Order 2018.
A new VAT penalty comes into force on the Isle of Man from 1 March 2018. The penalty will apply to businesses and company officers when they knew, or should have known, that their transactions were connected with VAT fraud.
The new penalty will:
be a fixed rate of 30% for participants in VAT fraud;
apply to businesses but can also be applied to company officers;
give the Treasury the option to name those that participate in the fraud; and
not include reductions for disclosure.
The IOM penalty corresponds to the equivalent UK measure in Finance (No 2) Act 2017 and is brought into effect by the Value Added Tax Act 1996 (Amendment) Order 2018.
