Jersey is paying a heavy price for taking on the UK on the issue of the VAT abuse that was operated by companies such as Amazon through the island until outlawed by the UK in April this year.
Despite officially saying it condemned the scheme when the UK outlwaed it Jersey riushed to arms to defend the right of compaies to abuse UK tax law from its shores. And now as Channel TV reports it's paying a heavy price for doing so, and losing:
Jersey politicians are asking why local legal costs have rocketed in the failed bid to overturn Britain's scrapping of LVCR. The island's bill has reached £740,000 - that's more than double the estimate of £360,000 and 10 times more than Guernsey's costs, which are £75,000.The bill is set to rise further when the UK government claims for its costs, which will be divided between the two islands.
Low Value Consignment Relief had allowed Channel Island companies to send cheap goods to the UK VAT-free. Last year, the UK government decided to end the controversial tax loophole. In March, Jersey and Guernsey States appealed to the High Court to overturn that decision but the islands lost their appeal. During States' Question Time, Jersey's Attorney General said complexities of the case and unforeseen developments, such as compiling extra witness statements, caused the costs to rise. He confirmed that the fulfilment industry has contributed £85,000 towards legal costs, but the remainder will come out of the taxpayer's purse.
Nice to know Jersey subsidised the abusers. Never, ever let it be said that Jersey doesn't subsidise or support tax abuse.
Oh, and to whom are these costs being paid" As Channel TV noted:
Chief Minister Ian Gorst said: "Litigation is a very uncertain process and it's very usual that costs will increase during legal action. I am satisfied by the original legal advice we received from PWC Legal."
Never, ever let it also be said that PWC aren't a) in it for themselves b) on the side of tax abuse.
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The Big Four are well embedded on the Crown Dependencies, courtesy of devious government skulking behind the images of picturesque virtue created by their own Tourist Boards.
Thanks to the island’s secrecy policies and misinformation puffery it has been impossible for the world to discover many of the frauds routinely committed on these islands … but when they are finally uncovered expect the Big Four to be up to their necks in it.
Have sympathy for the real islanders – more victims of this titanic confidence trick.
“Nice to know Jersey subsidised the abusers. Never, ever let it be said that Jersey doesn’t subsidise or support tax abuse.”
I know you’re in the business of being harsh, but that’s a bit harsh. The Jersey Government wants the jobs and investment LVCR brings – I’m sure if it could get those jobs and investment in another way it would do that.
I do agree with you however that LVCR is ridiculous and it’s right that the Coalition is getting rid of it.
Firstly, I must remain anonymous on this.
The most bizarre thing is that I am told that Guernsey’s legal advice was that the case was a no-hoper and should not be proceeded with. As a result, they took the sensible decision of telling Jersey they were not going to throw good money after bad. Jersey knew their case would be even weaker if Guernsey were not part of it and so begged Guernsey not to discontinue the action. Guernsey said “OK, but we are not paying any more”.
I have spoken to at least a dozen lawyers in Jersey both before and after the case and not one thought there was even a remote prospect of it succeeding.
The idiocy of it all is that Jersey politicians think that fighting a case with no prospect of success, at great cost, is a sign of strength. Morons.
Having said that, now the abuse has been stopped is there any sign of a regeneration of Briatin’s high streets? Thought not. The internet has killed retail. I spoke to some teenagers the other day and they were astonished at the idea that anyone would pay for music, let along buy a CD.
The world is not made up of teenagers