So much is going on I am having problems covering it all.
So let me just point at this important Guardian story on the ongoing saga of the Channel Islands, vat abuse and H M Revenue & Customs' incompetence or complicity in the face of it.
Even now HMRC seem to be doing their best to lose this case.
Thank heavens for Richard Allen and his campaign that is still holding them to account.
What really annoys me though is that Jersey thinks we should feel sorry for them because they'll have some more unemployed as a result of this activity. What about the thousands who lost their jobs here as a result of this abuse? Typically, Jersey is totally indifferent to them. My sympathy is not overflowing as a result.
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well fancy that tesco being involved in tax avoidance every little helps.
Although I do agree with your post, Richard – and I may be wrong here – but wasn’t it the UK who originally said that flowers under £18 would be tax exempt? Shouldn’t they have put suitable caveats in place to prevent the abuse of other products exploiting this exemption?
Come on – that’s being disingenuous
Should we really assume Jersey was going to turn out so bad?
Come on – can’t we occasionally give a place a good turn without assuming it will turn round and rat on us?
Personally, I don’t care how this affects Guernsey or Jersey, they let this situation develop and get out of control…and I would suggest that it was easy to see that at some stage this set up would come tumbling down.
Having said that, it would appear that LVCR companies are looking to move to other jurisdictions within Europe where they can carry on their business. I would have thought the UK government will have to tackle that issue at some stage.
I understand that the LVCR companies employ alot of non-locals from the UK, Europe etc and so although there will be an increase in unemployment they may well have to return to their own countries to find work so perhaps the unemployment impact has been overstated by Jersey.
Richard,
I’m a Jerseyman and totally agree with the scrapping of the VAT loophole because it is unfair and the Channel Islands have abused it. However, I have a lot of friends and colleagues who are against it.
Their argument is that this change is discriminatory against the Channel Islands and won’t help the problem because businesses will just move else where to jurisdictions that the UK isn’t targeting. What do you say to this?
Also, is it really as catastrophic as the Jersey government is saying? Surely businesses like Play.com have developed a good reputation so far and even with having to pay VAT plenty of consumers will still flock there out of habit. And presumably there are still some other markets in Europe that these companies can target?
I’m sorry for those who will lose jobs – but many ion the Uk have already
The UK can, and will, block the trade from other places
Jersey has a habit of wildly overstating everything
Can’t wait to find out if your allowed to discriminate against a non EU member. Remember that will work both ways.