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. 
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.