The BBC has covered the growing threat to the 'fulfilment' industry in the Islands - an industry that exists solely to exploit VAT tax avoidance.
The BBC news programme can be seen here.
The biggest joke is Jersey's Ecionomic Development Minuster saying Jersey cannot be used to abuse another country's tax regime. That is absurd. That is the basis of the entire economy of the island. Doesn't he realise quite absurd his comment he was? Or is Jersey really so blind to the reality of the abuse it facilitates?
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Yes and LVCR isn’t a tax regime in Jersey, its an import relief into the EU. It was clear from the broadcast that politicians have portrayed to Channel Islanders that LVCR as exactly that, a tax benefit for Jersey. The suggestion that UK companies are abusing the system is ridiculous. I know for a fact that at least three of the big ones went there because they had to go there to stay in business! I’m pretty certain that applies to all of the companies that have moved there. I hope these politicians get what they deserve from their electorate as they clearly do not know what they are talking about.
And while I’m on it, I have it in writing from a senior HMRC official that LVCR is to “help internet shoppers” ? Exactly where in EU law does it say that ? The internet didn’t exist in 1983 and the directive allows member states to exclude mail order goods so mail order is obviously seen as a source of abuse of LVCR. Internet is mail order with knobs on. The idiots are clearly running the asylum…
Interesting to note that Healthspan, the VAT free vitamin/supplement mail order business based in Guernsey is up for sale.Jumping ship before LVCR is withdrawn perhaps? Has the MD of Healthspan seen the writing on the wall regarding LVCR or know something yet to be announced?…
http://www.bbc.co.uk/news/business-12323347 A story on the bbc website relating news of a review, Mr Murphy.
Lets hope its not the farcical fudge the last review was.