George lets VAT cats off his tax hook

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Great headline, I think. It’s in the Mirror this morning. The story says:

George Osborne is exposed as a hypocrite for talking tough over a VAT dodge in opposition - but not acting to end it now he is Chancellor.

Three years ago he wrote to Richard Allen that he would "hold the Government to account" for letting large firms route imports of items such as CDs via the Channel Islands to avoid VAT.

Mr Allen, 47, of Chalfont St Peter, Bucks, said he had to close his mail order business as giant retailers were able to undercut him on the VAT.

Although the scam costs £200million a year in lost tax, after two months in office Mr Osborne changed his tune.

In another letter, he said the dodge - known as the low value consignment relief - ''was introduced in the UK many years ago to simplify import procedures".

The Chancellor's inaction is revealed as the ConDems unveil plans to spend £900million to target tax dodge loopholes.


And so nice to see the Mirror uses the ConDem terminology.

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