The Manx government said the blame for the cancellation of a popular car rally rested with organisers due to their "longstanding poor organisation".
On Sunday, Rally Isle of Man said it had been forced to scrap this year's event because of delays in obtaining a road closure order from the government.
The government said its officers were not confident the rally would be run "safely and competently".
Held on public roads, the race is also part of the British Rally Championship.
More than 100 crews had been set to compete from 13-15 September, most of whom had booked and paid to travel to the island, along with scores of spectators.
Organisers said they had seen "insurmountable delays" in securing the necessary road closure orders from government.
In a statement, the Department of Infrastructure said the cancellation was a "significant disappointment".
It added: "Despite repeated opportunities, Rally Isle of Man missed all of the original deadlines for its paperwork and indeed the extended deadlines.
"As a result of Rally Isle of Man's longstanding poor organisation, government officers were not confident the rally would be run safely and competently."
The world-renowned three-day rally was first held in 1963.