The Isle of Man Government has invited HM Treasury to conduct an assessment of the practice for the importation of business jets into the EU through the Isle of Man, with a focus on the VAT treatment of aircraft leasing arrangements.

The assessment by HM Treasury is being instigated as a result of allegations of abusive VAT avoidance made by media associated with the International Consortium of Investigative Journalists (ICIJ). It will supplement a review by the Isle of Man Treasury, Customs & Excise Division.

Chief minister Howard Quayle MHK said: "The VAT treatment of the importation of aircraft into the EU is a ...