From Hansard:
VAT: Channel Islands
Mrs. Gillan: To ask the Chancellor of the Exchequer what estimate he has made of the effect on value added tax (VAT) revenue of VAT-free goods coming through the Channel Islands into the UK in each of the last three financial years. [256410]
Mr. Timms: We estimate that the cost of the Low Value Consignment Relief on imports from the Channel Islands was around £70 million in 2006-07 and £80 million in 2007-08.
Insufficient data are available to produce comparable estimates for the year 2005-06.
Mrs. Gillan: To ask the Chancellor of the Exchequer what steps he is taking to prevent value added tax-free goods entering the UK from the Channel Islands. [256476]
Mr. Timms: Over the last three years the Government have worked with the authorities in Jersey and Guernsey to address this issue. As a result, and to avoid potential damage to their international reputation, the authorities in Jersey and Guernsey have taken a number of steps to restrain the exploitation of the low value consignment VAT relief by UK companies. These are set out in detail in my speech to the House on 27 January 2009, Official Report, columns 275-76.
Why do we put up with this?
Add it to the Crown Dependencies account.
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I thought most of the suppliers had moved from Jersey to Switzerland!
Shows how little you know
I am fed up with the UK shirking its responsibilities. The problem does not seem to me with the CI, the Isle of Man, Ireland or God who knows, these jurisdictions are just using (not just loopholes but) motorways left open by the UK government.
This is just another one of many examples where the UK is doing nothing to tackle its responsibilities towards its taxpayers.
There is a VAT loophole? Legislate against it.
People use Jersey and the like to evade tax? Stop having a means cost benefit analysis of justice and attack in justice ALL evaders. No settlement, no fines, just criminal penalties and jail sentences. I mean how many people were sent to jain in the UK for tax evasion? And this, depsite the recent disclosure amnesty?
Accountants, lawyers, etc… set-up dodgy tax schemes? Same medecine: jail. And that includes E&Y, KPMG, etc…
Companies are setting up false head office in other jurisdictions? Legislate and make sure that all UK activites are taxed in the UK.
Note a common theme here? All these people abusing the system live WITHIN the system and legislation and action could be taken to avoid these people behaving the way they do.
What we have in this country is a government who was very happy that the financial industry (banks, accountant, lawyers, etc…) was bringing in tax revenue. The offshore centres and their developments are nothing more than the result of British policies for the last 30 years. If the UK government wanted to act, it would. The only reason these centres are still active and flourishing is because they are wanted by the UK. Jersey, Guernsey and the like could be closed overnight. The UK just does not want that.
Richard, although your campaign is very worthy in my view, the target of your attacks is the wrong one, and this post is just another example of the hypocrisy of the British political system.
Hum
Time and again I blame the UK for this – not least Gordon Brown
Look all over this blog and you will find the evidence
I’m not sure your criticism is entirely fair on this occasion
Richard
True!
Point taken 🙂
Richard we know some operations have moved from Jersey and where does this GBP 80 Million spring up from? Most people I know download music directly from America and on many occassions its for nothing. I think the music and DVD industry is being whacked in all directions.
Excellent Newsnight last night. “Jersey has really cleaned up its act over the years”. And Guernsey. Makes a change to get some more honest news on Jersey/Guernsey finance for a change. You can see it on the BBC Newsnight website.
If the UK got some decent people to write its tax legislation and didn’t leave the holes, then there would be no problem. Don’t blame Jersey and the other offshore jurisdictions simply because they are taking advantage of gaping holes in your laws. Do something about it. By the way Hum, its a bit stupid to say put the lawyers and accountants etc in jail for setting up tax efficient structures when they are not actually breaking any laws. Think before you type!
GB
At least you admit that it is your intention to undermine UK regulation. That is exactly why you need to be put out of business.
Undermining the rule of law in another state is economic warfare. we don’t much like that.
Richard
Richard,
Nothing of the sort is admitted. Its not undermining something if you work within the legal framework.
@JTM Thats way out of date. They are all back in Jersey helped by thehut.com
[…] referred to VAT abuse on the trade ion items shipped from Jersey to the UK costing less than £18 many times before. It was dealt with in Parliament earlier this […]
[…] referred to VAT abuse on the trade ion items shipped from Jersey to the UK costing less than £18 many times before. It was dealt with in Parliament earlier this […]