From Channel Online, yesterday:
Channel Television can reveal that Jersey's fulfillment industry have been warned that Low Value Consignment Relief could be reduced or even scrapped.
LVCR is a tax loophole by which UK consumers can buy goods from the islands and not pay VAT.
We have learnt that at a private meeting, Jersey's Economic Development Minister warned the island's companies to prepare for the worst.
And so another campaign against Crown Dependency tax abuse looks to be heading for a successful close.
I've begun to forget the scopre now, except I know they've got zero.
And yes, I know this one is not over yet. I just emphasis the 'yet'.
After all, if you were a Chancellor looking at £200 million extra a year right now would you turn it down? Not even George Osborne could do that. Surely?
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Richard Interesting to note Jersey Treasury Minister Phillip Ozouf has commented on the impending further changes to LVCR which are expected to be announced in George Osborne’s pre budget statement on the 6th of December 2011. Stating to the BBC politics show that the Island needs to ” be building businesses which benefit Jersey but are also not harmful to the UK” he made comments starkly at odds with his previous whole hearted support for the expansion of the LVCR fulfilment industry whilst he was Economic Minster between 2005 and 2008. He also recently appeared in a photo in the Jersey Evening Press with the owners of Play.com the company responsible for the biggest growth in LVCR abuse. During his tenure as Economic Minister he introduced a policy for the fulfilment industry “to allow online retailing as whole to expand in the Island” creating many new jobs for Island residents on the back of a “kink in the tax system”. These residents may now suffer as a result of the inevitable removal of that kink just the same as people have suffered in the UK through the unfair competition brought about by the LVCR trade. .
Whilst I know your political leanings I am sure you cannot but agree that Gordon Brown was responsible for allowing this trade to grow unhindered. Labour were a Chocolate Teapot in that respect. The buck stops at the Chancellor and I personally congratulate George Osborne for looking at this issue in terms of ‘fairness’. Fairness is the core of this issue and its been an outrageous injustice ignored by politicians for many years.
Labour got this wrong
I can’t be blunter than that!
But I’m not sure it’s all down to Osborne either….the moves against Crown Dependency VAT abuse began with the Isle of Man in 2009
I’m sure our upheld EU complaint also helped!
Anything. Yes anything that prevents the Crown Dependencies ripping-off tax dues is welcome. Well done all those involved in the campaign to stop VAT abuse.
These places are plagued with elite, secretive insider organizations, resolutely linked to the financial services industry. This is the bloodsucker that has taken over; it has the power and it is the arbiter of what happens. A very bright search light must continue to be shone into the dark, secretive and nefarious dealings on these islands.
LCVR is a deliberately enacted item of UK legislation, which is being abused by UK companies in order to sell goods at a lower price to UK customers. Neither companies nor customers care that they are avoiding VAT and costing the UK treasury a great deal of money. To blame it on “bloodsucking” Crown Dependencies is laughable.
The UK government has been able to put an end to it any time they wanted, and I am delighted that they are finally going to do so.
Not laughable at all
You enabled the abuse
Fact
Now stop telling untruths
Circular shipping to gain an import relief is an abuse of the VAT system as ruled by the EU. If you are doing it, you know you are doing it.
The idea that poor little UK is being victimised by mighty bullying Jersey over LVCR is laughable. Particularly given Richard’s stated position that the UK can end Jersey’s “independence” any time it wants.
And the idea that someone who “enables” an abuse is less to blame than both those who actually carry out the abuse and those who could easily stop the abuse but choose not to, is not an “untruth”. It’s an opinion. Please feel free to disagree.
Until this summer the YK did not have EU clearance to act
Now it has
The abuse will ned
But abuse it is
And all you are doing is excusing it
When LVCR ends it will not only create unemployment in the Channel Islands it will create unemployment in the United Kingdom.If companies like Play.com don’t purchase so many products from Uk distributors then those distributors will reduce the staff levels and create unemployment in the Uk. Is this the way to get people out of unemployment and stimulate growth. This has far wider implications not only in the Channel Islands but in the Uk as many people work in the business from the goods leaving a warehouse to the logistics to the port then on to Jersey by boat. Do you think when this closes new high street cd shops will spring up everywhere! The only people this will cost is the uk government as they will need to check all the goods coming from the channel islands and will need to draught in extra staff to do this.
No one here agrees with you
A level playing field will let shops compete
And they will again
Your claim is ridiculous
So what happened before LVCR ? Are you saying people won’t buy something just because it includes VAT ? Rubbish…… and do stop bleating on about CDs. Its not the only thing being sold VAT free as you well know.
Whenever some new nasty “financial trick” is revealed on Jersey, Isle of Man and Guernsey those with vested interest (which may include beneficiaries outside the islands) treat the world to pious howls of righteous indignation.
Perhaps expression of regret, apology and an assurance to clean the place up would be more appropriate?