Attac Jersey is a Member of the International Tax Justice Network. We are Members of the Association for the Taxation of financial Transactions for the Benefit of Citizens, (ATTAC) and the Tax Justice Network, (TJN). The aims of both organisations are to research, educate and campaign to further public awareness. We are seeking to alleviate poverty through the creation of just taxation systems to fund social goods.

Saturday, October 30, 2010

blog archive 25 May, 2010

Posted by Attac Jersey - at 8:11 PM 1 comments


Posted by Attac Jersey - at 11:44 AM 0 comments

Tuesday, May 25, 2010

Jersey and Guernsey VAT scams undermine the UK economy

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Tax Research UK

The Jersey and Guernsey VAT scams undermine the UK’s

May 25th, 2010

Sometimes I wonder why I allow comments on this blog: so many commentators promote

abusive ideas or simply seek to abuse the hassle quite often seems to outweigh the benefit.

Then along comes comments, like the one I’ve already referred to this morning, or this one

on the fundamental problems VAT abuse through Jersey and Guernsey causes to UK small

businesses, and I realise providing a voice can be worthwhile:

The whole Jersey scam makes me mad. Very simply, I am losing money..!

I sell manufacturer own ink cartridges. "I can get those cheaper on the internet" is a common

cry. When compared against mainland based retailers, my customers tend to see the error of

their ways finding that I am indeed cheap and pay up!

But then there are the customers who have found the sites in the channel islands.

I was horrified to find a particular item that I was selling on my shelf for £12.85 is available

for £10.90 on the web site that my customer buys his inks from. Do the maths… yes, that

is the same price as I am selling it without VAT!!! How can I compete when there is a built

in 17.5% discount The on-line retailer doesn’t even have to begin to be competitive. That

particular customer could be worth £400 turnover each quarter to me on cartridges alone - not

to mention the lost revenue to the public purse!

This loop hole MUST be closed. We cannot compete.

I recently had a letter from HMRC after I complained to my MP. In this letter, they stated that

the VAT office are "monitoring the situation"..

I’m monitoring my P & L!


Thame, Oxfordshire

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