by on May 20, 2011 in Constitutional, Tax

Air Passenger Duty climb down

The UK Government has backed down on plans to tax the oil and gas industry for every worker it sends offshore on helicopters.

The UK Government were considering applying the top rate of air passenger duty (APD) to all flights to rigs and platforms.  It had been estimated that the proposal would have cost the industry some £165million a year.

However, after an angry backlash from industry chiefs and politicians at both Holyrood and Westminster, Scottish Secretary Michael Moore confirmed that North Sea helicopter operations would not be “penalised”.

Press and Journal 19 May 2011

Note.  APD was one of four minor taxes that the Calman Commission on Scottish Devolution said should be devolved to the Scottish Parliament.  As yet only Stamp Duty Land Tax and Landfill Tax are included in the Scotland Bill.  It is not yet clear if APD and Aggregates Levy are to be included.

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by on May 10, 2011 in Constitutional, Tax

Tax Sovereignty

The Irish Government’s battle to retain a low corporation tax rate was given a boost last week, after the Dutch finance minister backed Ireland’s position.  The comments will help bolster Ireland’s fight against German and French pressure to increase its 12.5% corporation tax rate in exchange for better terms on the €85bn bailout loans from the EU and IMF.

During an official visit by President Mary McAleese to the Netherlands, Dutch finance minister Jan Kees De Jager said that countries should be able to retain sovereignty on tax matters.  Irish Independent 3 May 2011

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