AUDIT EXEMPTION … RAISING THE THRESHOLDS

5 December 2005 Audit Exemption - Raising the Thresholds Issued by: Income Tax Division nd 2 Floor Government Office Buck’s Road Douglas IM1 3TX The Treasury, Yn Tashtey Income Tax Division Audit Exemption – Raising the Thresholds Public Response Document AUDIT EXEMPTION – RAISING THE THRESHOLDS PUBLIC RESPONSE DOCUMENT Introduction The Income Tax Division, on behalf of Treasury, issued a proposal document “Audit Exemption – Raising the Thresholds” on 15 March 2005. Treasury can now respond to the consultation exercise by reviewing the feedback received and outlining a way forward in this important area. In total, sixteen responses were received from members of the public and the accounting profession. With the impending implementation of a corporate taxation regime and a general 0% rate of income tax for companies in the Isle of Man, the Treasury Minister confirmed in his 2004 Budget Statement that audit exemption limits for Manx companies would also be updated. Significant changes elsewhere had already taken place. In November 2003 the United Kingdom Department of Trade and Industry had announced that a new audit exemption limit would be set for companies having turnover of up to £5.6 million, a figure equal to the EU maximum. In comparison, the current ...