International accountant and shipping consultant Moore Stephens is to make representation to Her Majesty’s Revenue & Customs in connection with recently issued draft revised guidance in respect of the U.K. tonnage tax regime, some of which it considers to be unhelpful. Moore Stephens tax partner Sue Bill said, “None of the changes are fundamental. Indeed, some of them are helpful, for example the revised comments regarding the circumstances in which a tonnage tax company is regarded as only temporarily having ceased its activities and therefore eligible to be within the regime when it resumes activities. Such changes show that HMRC is prepared to be more flexible in certain circumstances. “There are, however, a couple of areas where the update is unhelpful. For example, HMRC has said that it does not regard the recent decision in Euroceanica (U.K.) Limited v HMRC (2013) UKFTT 313 as binding. In Euroceanica, the First Tier Tribunal, which hears appeals against HMRC decisions relating to tax, held that interest received on a security deposit which was required in order to take out bank loans to acquire ships in the tonnage tax regime was within the tonnage tax ring-fence, and that therefore no further tax was payable. However, HMRC has now said that, as a general principle, it does not accept that interest arising on such security deposits is within tonnage tax
Greece's shipping sector faces paying a higher tonnage tax, and a phase-out of the special tax allowances it has enjoyed, under the latest proposals presented by the country's creditors, according to documents seen by Reuters. Together with tourism, the shipping sector is a vital generator of income for Greece. According to an official document indicating steps Greece must take, its lenders say the country must "increase the rate of the tonnage tax and phase out special tax
Moore Stephens, understands that Her Majesty’s Revenue & Customs (HMRC) has agreed to re-examine, in consultation with the shipping industry, its earlier intention to unilaterally reinterpret the UK Tonnage Tax rules to the potential detriment of many shipowners. Widely disputed changes based on unspecified ‘legal advice’ were set out in HMRC’s tonnage tax manual in September 2009. These focused in particular on a reinterpretation of the strategic and commercial
AP reported that Horizon Lines Inc. said its third-quarter profit rose, aided by a large tax benefit. For the quarter ended Sept. 24, the company reported net income of $52.9 million, or $1.57 per share, versus prior-year profit of $2.8 million, or 14 cents per share. Revenue rose to $304.7 million from $289.1 million in the year earlier period. Horizon elected to pay an alternative tonnage tax instead of federal corporate income tax on qualifying shipping activities
International accountant and shipping consultant Moore Stephens says it is regrettable that changes announced for inclusion in the UK Finance Bill 2013 have failed to remove exchange rate distortions from the calculation of capital gains on ships. Currently, all capital gains and losses subject to UK corporation tax are calculated by reference to sterling, with the result that capital gains and losses arising on non-sterling assets, including certain ships
The European Commission has sent to Greece a set of proposals to ensure that state support to the maritime sector in Greece complies with EU state aid rules. In particular, the Commission found that current provisions may breach EU state aid rules by allowing shareholders of shipping companies to benefit from favourable tax treatment that should be reserved for maritime transport providers. Similarly
“We have launched a new initiative to help shipowners improve their green credentials and meet other corporate social responsibilities," said Scott Bergeron, CEO of the Liberian International Ship & Corporate Registry (LISCR), the U.S.-based manager of the registry. "Our aim is to ensure that Liberia remains the greenest fleet afloat." He continued, “The Liberian administration welcomes any new technology and ship designs which improve operational efficiency
Horizon Lines, Inc. reported solid earnings for the second quarter of 2007. Net income for the second quarter of 2007 was $9.6m or $.28 per diluted share compared to net income of $6.4m or $.19 per diluted share for the second quarter of 2006. After adjustment to exclude the non-recurring loss on extinguishment of debt in 2007 and secondary offering expenses in 2006, and to retroactively apply tonnage tax to 2006, adjusted net income was $10.0 million or $
UK Budget 2016 provides surprises for shipping and radical measures for offshore maritime sector. Leading accountant and shipping adviser Moore Stephens says the UK Budget 2016 contains a number of surprise developments which are likely to be of interest to the shipping sector, as well as a radical set of measures which it is hoped will assist the offshore maritime oil and gas sector. The Government announced a further reduction in the rate of corporation tax
Wilh. Wilhelmsen ASA (WW) posted its results for 2005. Net operating profit was $232 million, while total operating income came to $2.2 billion. Profit before taxes was $209 million. WW's net operating profit for the fourth quarter of 2005 came to $67 million, with total operating income at $608 million. Profit before taxes came to $21 million, compared with $45 million in the same period of 2004. This decline is entirely attributable to a repricing, without liquidity effect
UK Chamber of Shipping statement on the outcome of the EU Referendum The UK Chamber of Shipping remained neutral on the question of the UK’s membership of the EU but we recognise the decision of the British people. The chamber has always argued that the shipping industry is resilient
Liberia has become the first flag state to participate in the Green Award program, under which eligible shipowners will be offered significant annual tonnage tax discounts. Scott Bergeron, CEO of the Liberian International Ship & Corporate Registry (LISCR)
Carbon War Room (CWR) announced today that a collaboration between Hammonia Reederei, a Hamburg-based shipowner, and New Orleans-based charterer Intermarine, has enabled the retrofit of three sister vessels with multiple efficiency technologies
The European Commission recently published Decision (C(2015)9019 final / 18-12-2015) alleging that some provisions of the Greek shipping taxation regime are in breach of EU state aid provisions and, in particular, the conditions set out in the current Community Guidelines on State Aid to Maritime
The Maritime and Port Authority of Singapore (MPA) today recognised another 53 Green Ships from 41 companies that have qualified for the Green Ship Programme (GSP) at the Third Singapore Registry of Ships Forum (SRS Forum). The GSP encourages Singapore-flagged ships to reduce carbon
Nordic Tankers and Borealis Maritime Ltd has announced the intention to form a jointly held company, Crystal Nordic A/S – a strong player in the short-sea, ice class chemical tanker trade in the Baltic and North-Western European market.
Greece's cash-strapped government is proposing to end increase taxes m the country's key shipping sector in order to boost revenues, but some shipping owners are threatening to move their ships abroad as a result, says a report in BBC.
The Swedish government has proposed a Swedish tonnage tax system. The aim is for Swedish shipping companies to compete under equal conditions with companies in other countries in Europe. At Donsö Shipping Meet 2015, the Minister for Infrastructure Anna Johansson presented the
Greece's international lenders are asking the debt-laden country to hike vessel tax, according to a report in the Financial Times. The shipping sector is a vital generator of income for Greece. According to an official document indicating steps Greece must take
Since ancient times, maritime trade has been a backbone of Greece’s economy with shipping playing the dominant role. Today, it is the second largest contributor to the national economy after tourism. It is the country’s geography with a coastline almost that of the U.S
According to UK's Department of Transport (DFT) the UK fleet size fell in 2014 from 16th place to 20th place, in terms of deadweight tonnage, decreasing by 17 per cent. Ships registered in the Crown Dependencies (primarily the Isle of Man) remained at 12th place despite tonnage decreasing
Cyprus President Nicos Anastasiades reiterated his Government’s strong support towards the shipping industry and determination to introduce those mechanisms necessary to further enhance it. The Ministry of Communications and Works and the Department of Merchant Shipping
Moore Stephens says shipping must monitor developments in wake of Greek government change International accountant and shipping adviser Moore Stephens says it is too soon to say whether the Syriza party’s victory in the country’s elections could, as some fear
Will the new government in Greece led by radical-left party Syriza levy higher taxes that the shipping industry can’t afford? A report in WSJ says that several owners in Greece’s important shipping sector are worried about this.
Companies in the offshore maritime sector could be among those hit by a 25 percent Diverted Profits Tax (DPT) charge under draft UK legislation scheduled to enter force in April 2015, international accountant and shipping adviser Moore Stephens said.