Moore Stephens Warns of Threats to UK Shipping

Thursday, July 07, 2011

Accountant and shipping adviser Moore Stephens has welcomed the UK government’s decision to issue consultation papers on statutory residence and the taxation of non-domiciliaries. But it warns that the UK shipping industry faces a growing threat from other jurisdictions.

Her Majesty’s Revenue & Customs’ consultation papers propose a statutory residence test and certain changes to the taxation of non-domiciliaries with effect from April 2012. “These could have important implications for shipping,” says Moore Stephens shipping partner, Richard Greiner, “and are generally to be welcomed.”

The stated objectives of the non-dom taxation reforms are to ensure that non-doms make a fair tax contribution and to encourage non-doms to invest in the UK. To achieve the latter objective, the government intends to allow non-doms to remit overseas funds to the UK tax-free for commercial investment in a qualifying business. Greiner says, “Although these measures are at present the subject only of a consultation paper, and could change as a result of responses received by the government before the cut-off date of September 9, 2011, they represent a positive development.

“Similarly, the draft proposals for a statutory residence test should result in rules which are clear and fair, providing some long-overdue clarity in what has previously been a very grey area. This is especially appropriate for a country which seeks to attract, and retain, international business.

“The government’s commitment to consult on these issues is particularly positive, but is in stark contrast to its recent unilateral decision to reinterpret the rules on UK tonnage tax. The importance of tonnage tax should not be underestimated. A recent report by UK Maritime notes that, had the UK-owned fleet continued to decline at the rate seen in the years immediately before the introduction of tonnage tax, the UK shipping industry would have contributed £3.9 billion less to UK GDP in 2009 than it actually did, and there would have been 81,000 fewer jobs in total.

“UK shipping faces a serious and growing threat from other, more user-and-tax-friendly regimes. We have already seen movement to other jurisdictions. If this is not to become an exodus, it is essential to maintain the competitiveness of the UK shipping industry.”

(Source: Moore Stephens Press Release)

Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Gazprom Transgaz Ufa Organizes Arts Festival

Over 200 healthy children and children with disabilities from Bashkortostan as well as the Volga Region participated in the Breaking the Barriers second interregional children’s arts festival,

President Pryor Retires from ExxonMobil Chemicals

Stephen D. Pryor, president, ExxonMobil Chemical Company and vice president of Exxon Mobil Corporation, has elected to retire on January 1, 2015, after more than 44 years of service.

Steven Palazzo Visits HII, Newport

Huntington Ingalls Industries today hosted Rep. Steven Palazzo, R-Miss., for a tour of the company's Newport News Shipbuilding division. Palazzo represents the fourth district of Mississippi,

Finance

Time-out for Kwanza Drilling

Statoil has decided to cancel the Stena Carron rig contract after fulfilling the work commitments in the Statoil-operated blocks 38 and 39 in the Kwanza basin offshore Angola.

Oil Deal Between Iraqi Kurdistan & Baghdad Welcomed

The United States welcomes an agreement between Iraq's central government in Baghdad and its northern Kurdistan region over the management of oil exports, U.

Nigeria to Cut Petrol Subsidy by Half

Nigeria plans to cut subsidies on petroleum products by half next year after sharp falls in global crude prices, spurred the government to revise its 2015 budget downwards,

People in the News

7 Rescued from Sinking Freighter Near Haiti

Seven crewmembers were rescued after their 100-foot coastal freighter began taking on water and sank approximately 45 miles north off of Cap Haitien, Haiti, Friday.

Gazprom Transgaz Ufa Organizes Arts Festival

Over 200 healthy children and children with disabilities from Bashkortostan as well as the Volga Region participated in the Breaking the Barriers second interregional children’s arts festival,

President Pryor Retires from ExxonMobil Chemicals

Stephen D. Pryor, president, ExxonMobil Chemical Company and vice president of Exxon Mobil Corporation, has elected to retire on January 1, 2015, after more than 44 years of service.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Offshore Oil Pipelines Port Authority Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2238 sec (4 req/sec)