How the Channel Islands Tax Loophole Affects Us All

HOW THE CHANNEL ISLANDS TAX LOOPHOLE AFFECTS US ALL THE PROBLEM: GOODS WORTH UNDER 18 POUNDS SENT TO THE UK FROM OUTSIDE THE EU, INCLUDING FROM THE CHANNEL ISLANDS, HAVE VAT-FREE STATUS. 130 MILLION+ POUNDS IN TAX IS LOST EVERY YEAR TO THE LOOPHOLE SO HOW DOES IT WORK? THOUGH THEY ARE A PART OF THE UK, THE CHANNEL ISLANDS ARE NOT PART OF THE EU, AND ARE NOT SUBJECT TO VAT AS A RESULT, MANY MAJOR RETAILERS NOW SELL PRODUCTS WORTH LESS THAN 18 POUNDS ONLINE, USING OFFSHORE CENTRES USING THE VAT DODGE, THESE RETAILERS ARE ABLE TO UNDERCUT THEIR RIVALS WHO SELL FROM THE UK AND HAVE TO PAY VAT UK POPULATION > 61 MILLION THIS IS REPORTEDLY CLOSING SMALL UK BUSINESSES CLOSED CHANNEL ISLANDS POPULATION APPROX 170K HOW DOES IT AFFECT EVERYONE? AND SO: SMALL BUSINESSES CANNOT COMPETE AND ARE FORCED www CLOSED TO CLOSE NO VAT CUSTOMERS LIKE SEEING CHEAP PRICES ONLINE THE LOST VAT HAS A KNOCK-ON EFFECT ON PUBLIC SERVICES IN THE UK AVOIDS UK TAX PRICES ARE CHEAP BECAÚSE THE SELLERS SHIP OUT OF THE CHANNEL ISLANDS PLUS THE HIDDEN COSTS DEBT THE LOSS IN VAT PAYMENTS COULD LEAD TO INCREASED NATIONAL DEBT, RISING UNEMPLOYMENT AND SPENDING CUTS NHS SCHOOLS LIBRARIES HOW HARD DOES THE LOOPHOLE HIT SMALL UK BUSINESSES? 58.8 BILLION WAS SPENT ONLINE IN 2010 BY UK CONSUMERS TWO IN FIVE BRITS ARE NOW SHOPPING ONLINE AT LEAST ONCE PER WEEK 60% OF CONSUMERS BELIEVE THEY CAN GET A BETTER DEAL ONLINE THAN ON THE HIGH STREET 60% “THE FULFILMENT LOOPHOLE HAS HAD A REAL IMPACT ON SMALL BUSINESSES IN THE UK, THEY SIMPLY CANNOT COMPETE." STATES OF GUERNSEY DEPUTY BARRY BREHAUT SOURCES: IMRG AS CITED BY MARKETINGMAGAZINE.CO.UK, JANUARY 2011 | ECOMMERA.COM, AUGUST 2010 | ECOMMERA.COM, AUGUST 2010 | TELEGRAPH.CO.UK | www.MARKHOOSON.COM tood