PARADISE PAPERS: EU COMMISSION FOLLOWS UP ON ILLEGAL TAX BREAKS FOR YACHTS AND AIRCRAFT – ITALY AND ISLE OF MAN

On 8^th November, an EU news release said that the Commission has stepped up its agenda to tackle tax avoidance in the yacht and aircraft sectors by implementing infringement proceedings on tax breaks being applied in the pleasure craft industries of Italy and the Isle of Man.  The Commission is to send a letter of formal notice to Italy for not levying the correct amount of VAT on the leasing of yachts.  It also decided to send a reasoned opinion to Italy because of its illegal system of exemptions for fuel used to power charted yachts in EU waters. Finally, a letter of formal notice was sent to the UK  concerning the Isle of Man’s abusive VAT practices with regard to supplies and leasing of aircraft.  These measures are concerned with –

• A reduced VAT base for the lease of yachts offered in the tax law of Italy;
• Excise duty rules for fuel in motor boats in Italy; and
• Abusive VAT practices in the Isle of Man.

http://europa.eu/rapid/press-release_IP-18-6265_en.htm

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section View all posts by raytodd2017