Income Tax payments on account.

Summary

The request sought data on Isle of Man Income Tax payments on account, associated interest earned by the Treasury, and interest paid by residents for late payments between 2016 and 2020, along with an explanation of payment structures. The Treasury disclosed the total interest payments made by residents for late tax and the legal basis for single lump-sum payments, but did not provide figures for total tax paid on account or interest earned by the Treasury.

Key Facts

• The Treasury did not provide the total amount of Income Tax paid on account for the requested years.
• The Treasury did not provide the total interest received from banking Income Tax payments on account.
• Total interest payments made by residents on outstanding Income Tax demands were disclosed for 2016-2020.
• Section 96B of the Income Tax Act 1970 mandates a single payment on account by 6 January.
• Payments on account are swept weekly into the main Government bank account and form part of overall reserves.

Data Disclosed

• 2016 – £439,176.06
• 2017 – £273,762.83
• 2018 – £253,555.59
• 2019 – £249,319.07
• 2020 – £183,155.37
• 6 January
• 6 December
• 30 days
• Section 96B income tax act 1970
• case_id: 2061125
• 2021-10-29
• 2021-11-25

Original Request

1. What was the total amount of IOM Income Tax paid on account (i.e. paid in advance for the forthcoming year) for each of the years 2016, 2017, 2018, 2019 and 2020? 2. What is the total amount of interest received by IOM Treasury from such Income Tax payments on account for each of the years 2016, 2017, 2018, 2019 and 2020 (interest here to mean bank interest the Treasury received from banking such payments)? 3. What is the total amount of interest payments made by IOM residents on outstanding Income Tax demands for each of the years 2016, 2017, 2018, 2019 and 2020( interest here to mean interest payments levied on taxpayers for late payment of Income Tax due)? 4. Why do IOM Income Tax payments on account have to be paid in one single lump sum by residents whereas in the UK the payments on account are spread and split between 2 equal payments?

Data Tables (1)

Data Tables (reformatted)

Full Response Text

payable. These funds are swept weekly into the main Government bank account, alongside other income, and forms part of our overall reserves invested with external Investment Managers.

1. 2016 – £439,176.06 2017 – £273,762.83 2018 – £253,555.59 2019 – £249,319.07 2020 – £183,155.37

2. Section 96B income tax act 1970 requires that non-corporate taxpayers shall make a payment on account of their liability on or before 6 January in the year of assessment. The payment on account may be paid later if the notice is served after 6 December, in which case the payment on account is due 30 days after the date of the notice.

Please quote the reference number 2061125 in any future communications.

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I will now close your request as of this date.

Yours sincerely

FOI Coordinator, the Treasury