The World Wide Web’s First Multi-jurisdiction Interactive Income Tax Calculator

Ernst & Young Isle of Man have launched TaxOmeter on their website - widely believed to be the Internet’s first multi-jurisdiction, interactive Income Tax calculator.

E&Y’s Isle of Man main website went on-line at the end of 1999 and the launch of TaxOmeter is the first of what E&Y intends to be several innovative additions to their site.

The E&Y Isle of Man main website address is www.ey.co.im

TaxOmeter enables residents of the Isle of Man, the United Kingdom and the Republic of Ireland to instantly compare their basic Income Tax liabilities in the three countries. TaxOmeter will compute the tax liabilities for individuals and married couples.

For example: TaxOmeter makes the following comparisons:

  • A single person earning £40,000 pa will pay:

    • £1,893.00 Income Tax in the Isle of Man

    • £3,252.90 Income Tax in the United Kingdom

    • £3,806.00 Income Tax in the Irish Republic

  • A married couple with a joint income of £50,000 will pay:

    • £5,786.00 Income Tax in the Isle of Man

    • £8,705.80 Income Tax in the United Kingdom

    • £12,012.00 Income Tax in the Irish Republic

TaxOmeter will compare the Income Tax liabilities in the three countries for the tax year 2000/2001 and can make a comparative calculation for the year 1999/2000.

TaxOmeter forms part of TaxCentre, a highly informative and extensive section of the main site. TaxCentre contains details of Isle of Man taxes including company and personal taxation, offshore tax planning and the many benefits for residents of the Island compared to their neighbours in Britain and Ireland and further afield.

Within TaxCentre are comprehensive details of Ernst & Young’s Tax Services to Island residents and the firm’s International Tax Planning Services.

Said Ernst & Young partner Peter Horsthuis on the launch of the firm’s TaxOmeter: "Our TaxOmeter has been designed to be a practical and useful tool for people who are thinking of setting up residence in the Isle of Man. At the click of a button it enables them to instantly calculate their potential Isle of Man liability for differing levels of income, and identify how much more tax they would pay in the UK and the Republic of Ireland. It will also be of great interest to people already residing on the Island and is a good example of the interactive capabilities of the Internet. Our Website, and particularly TaxOmeter, is a demonstration of the pro-active approach we at Ernst & Young take in assisting our clients on taxation and with their financial planning."

In addition to TaxCentre, The new E&Y site includes an enormous amount of information about Ernst & Young’s services, detailed information on the Isle of Man, the government and the numerous advantages of conducting business from the Island. The unique, imaginative and user friendly Navigation system (designed as a ship’s mast and rigging) guides visitors around the site which is divided into three main sections - Introduction, Our Services and Offshore Sectors. By clicking flags at the top of the section masts visitors enter the introductory pages of these sections which themselves contain their own navigational guides. Each of these main sections contains a News Desk column which E&Y regularly update with business news from the Isle of Man and the Ernst & Young Office.

Particularly useful features within the Navigation section are titled "How to Navigate" and "Lose Your Way?", the latter redirecting visitors through scroll bars to return to the main section headings or back to the Navigation mast, to plot their way ahead. The site also has its own internal Search feature.

Another unique feature of the site is the extensive use of Isle of Man photographs and images to illustrate the pages. The effect of this creative approach is to make the viewers’ journey through the site entertaining and visually appealing and as well as informative. The result of this deliberate "Manx branding" is that a visitor, who may have never been to the Island, can gain an impression of what is referred to as the "Jewel of the Irish Sea." The famous Three Legs of Man are also put to good use - they act as hyperlinks between pages.

In the Introduction Section there are sections on Ernst & Young, the Isle of Man, the Island’s economy, Budget, political background, commerce, culture, law and communications. The partners and senior members of staff each have their own page with a photograph and C/V and an email link for personal communication with clients. The section also contains an extensive Links to Other Sites page and detailed maps and air and sea communications.

The Services Section highlights the comprehensive professional services provided by Ernst & Young Isle of Man, including Audit and Assurance Services, Tax Services, Corporate Services, Trust Services and Consultancy and Advisory Services.

The Offshore Section highlights the Island’s political stability, confidentiality and innovatory legislation. A visitor may browse through informative sections on Offshore Tax, Banking, Trusts, Funds, Shipping Registration, Depositors’ Protection, the Island’s growing Film Industry and many other topics of relevance for those interested in international finance.

With the world-wide interest in E-Commerce, Ernst &Young consider that this topic merits a self-contained section within the main site. Titled The Isle of Man - The e.Com Advantages it details the Island Government’s initiatives in this area, including the Electronic Transactions Bill and the E-Commerce Banking Licences, the first of which has recently been issued. This section also gives information of E&Y’s services to businesses interested in offshore e-commerce and will shortly be expanded with even greater detail. Said managing partner Larry Kearns: "There is great potential for the Isle of Man to become a leading centre for E-Commerce. With taxation legislation as it stands at the moment, companies can trade through the island, book all their profits here and minimise taxation liabilities. E-Commerce is the biggest opportunity facing the offshore world. Through our Website we will be keeping the world informed of the steps both the Island and Ernst & Young will be making to keep us at the forefront of developments."

The content of this article is intended only to provide general guidelines related to this particular matter. For your specific circumstances, full specialist advice is recommended.