The consultation period on the subject of tax reliefs has been extended after dozens of replies and , say Treasury, "misplaced concerns".
The consultation document was released on 13 January and the consultation period was due to close on 17 February , just before budget day on 21 February.
But, say Treasury, in view of the number of consultation exercises currently running, and in order to allow interested persons sufficient time to give their views, the period will now run until 10 March, 2006.
They say the consultation generated a lot of comment in the media and the Income Tax Division has already received over 40 pieces of correspondence. Much of the comment has followed the erroneous interpretation that Treasury intends to abolish certain or all of the tax reliefs mentioned in the consultation document; with both the comment and correspondence focussing on mortgage interest relief.
As is stated in the document however, it has been Tynwald policy since 2000 that, “Deductions from income will be simplified to leave only those which either secure the elements that are essential to quality of life or encourage personal enterprise such as housing costs, child care and business start-ups.” Treasury wishes people to have the opportunity to comment on the whole range of tax reliefs in this context.
Such has been the level of concern that Treasury Minister Allan Bell has been moved to assure people that no policy decisions have been taken yet in respect of the tax relief system for individuals. What this was, was a policy commitment via this consultation to review and possibly update the system.
Friday 3rd, March 2006 05:01pm.