(CMR) It has come to light in recent international news media that Volkswagen re-registered six company jets in Germany that were previously registered in the Cayman Islands.
The original article was published in Germany's Welt am Sonntag newspaper.
The spokesman said the move was sparked by new EU regulations stipulating that aircraft must be governed by the authority of the territory where the planes are stationed. Apparently, Volkswagen had previously denied that the planes were registered in the Cayman Islands for tax-avoidance reasons, saying it was simply a matter of less bureaucracy.
Europe's biggest carmaker used to have an Airbus A319 for executives' use but sold it in the wake of the 2015 “diesel gate” crisis – which has cost it around $30 billion so far – as a signal of cutting back on an ostentatious corporate lifestyle.
The European private jet market is the third biggest in the world after North and South America, and the overall number of private jets in the continent is increasing. Germany has the largest number of registered business jets in Europe (404) followed by the Isle of Man (325). There are 2,367 business jets registered in Europe, a rise of 78 or 3.4 percent in 2016.
It is uncertain how this EU regulation will impact other aircraft registered in the Cayman Islands but there is an anticipated decrease in the coming year.
In some cases, jet owners have been able to avoid paying any VAT on these jets when registered in the Isle of Man. Read more
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