AMS Alerts to Potential Isle of Man VAT Issues

Locally owned and based Aviation Management Services (Cayman) Ltd. (AMS) announced that aircraft owners registered in the Isle of Man may want to seek professional advice regarding potential Value Added Tax (VAT) issues as a result of a recently disclosed data breach.

On 26 October 2017 the lead news story on the national radio station of the Isle of Man, was about Value Added Tax (VAT - or sales tax) on aircraft being imported into the European Union. Importing aircraft into the Isle of Man is certain to become part of a major global news story likely to be detrimental to privately registered aircraft.

Appleby, a leading off-shore law firm based in Bermuda, suffered a data breach last year. Much of this data is now with the International Consortium of Investigative Journalists, a major group of journalist has won Pulitzer Prizes for the way it coordinated the publication of the Panama Papers and other large leaks. Leading journalists, including the British Broadcasting Corporation, The New York Times, France’s Le Monde, as well as the Guardian in the UK and others around the world have been working on the Appleby data breach story since the beginning of 2017.

The precise details of what may come out of this rapidly developing story are as yet unknown. None of these journalists or media organizations have yet revealed any details as of this today. The Panama Papers, also known as the Mossack Fonseca leak, has brought down many public figures, and even some governments, as it involved over 11+ million documents.

It is reported that the Isle of Man Government has said that it has been inquired with questions relating to the Value Added Tax (VAT) on aircraft. The Isle of Man is a significant holder of registration for business jets from around the world. One of the expected subjects of concern is a comment the may insinuate that some business jet owners have imported aircraft into the European Union through the aircraft registry of the Isle of Man to avoid paying taxes.

Appleby and the Isle of Man Government have denied any wrongdoing. The Isle of Man government has already begun auditing many of their current aircraft structures. The Isle of Man’s Chief Minister is notably worried about how the reported leaks might affect the country.

Concerned aircraft owners who have current or past aircraft registered through the Isle of Man Civil Aviation Administration should reach out to a professional aircraft registry business to learn the latest news on this unfolding story, and how it might affect them. AMS can help these owners by helping them understand how this issue might affect them, and the best course of action to take to minimize any risks they may potentially be exposed to.