LCVR must go, judicial review rules Government decision correct - Business Credit News UK
Member's Login
Email:

Password:


Save password
Forgot your password?
 Why Register?
 Register Now

Latest News Highlights
HMRC steps up unannounced visits for debt enforcement
Meeting of Creditors Liquidation Notices - Section 98 of the Insolvency Act 1986 - 31 July 2014
 
New Links
AddCash
MAF Business Information Services (Pvt) Limited
 




Aug 1 2014
Add this page to your favourites Need help navigating this site? View a map of this sites contents
 
Home > News > Article
 
LCVR must go, judicial review rules Government decision correct
 

Mar 15 2012
The Forum of Private Business has welcomed today’s judicial review in to Low Value Consignment Relief, ruling the Government’s decision to outlaw the practice as legal and just.

George Osborne announced in November he was outlawing LVCR, a system which effectively allows goods coming from the Channel Islands worth less than £15 to ship VAT free.

That decision was, however, challenged in the courts by the Governments of Jersey and Guernsey, who claimed that closing the loophole on April 1 would be discriminatory and illegal.

But law lords today said that was not the case following a three day hearing in London.

“This is a victory for common sense in what has become something of case of David v Goliath.

“But the judiciary has today reaffirmed what George Osborne said in November, and that is LCVR is tax avoidance, plain and simple, and has to stop.

“Unfortunately it is too late for countless small firms which went to the wall, unable to compete with giants such as Amazon and Tesco, who have been able to unfairly use this loop hole to avoid paying billions in tax and undercut their small rivals by significant margins.

“Had the Government’s decision been overturned there would have been serious consequences for high streets across the UK.”

The Forum and pressure group Retailers Against VAT Abuse Schemes (RAVAS) have long argued that exploitation of LVCR by large companies was both anti-competitive and amounted to tax avoidance. Together they have argued that the change is lawful and necessary to protect small high street shops and internet traders.

EU law even stipulates that the Government is obliged to act in order to prevent tax abuse and avoidance.

RAVAS spokesman Richard Allen, who provided evidence at the inquiry, said: “The long-term and blatant abuse has destroyed many UK businesses which, other than for the lack of a 20% trading advantage, would have been viable healthy operations giving people jobs and generating tax revenue in the UK.

“While of course we have sympathy for the effect on employment in the Channel Islands that the closure of this industry will have, it is for the people of the Islands to strongly question their elected representatives as to how they could possibly allow an industry that was based on the abuse of tax to become so important to their economy.”

LVCR was created almost 30 years ago as an administrative relief for perishable goods sent by post. However, in the past decade many large companies have moved operations off-shore in order to exploit it, undercutting smaller retailers unable to compete on price.

Related link: www.fpb.org


Print this article     
 
Channels
Post News
News Archive
News Search
Letter To Editor
 
News Headlines
HMRC steps up unannounced visits for debt enforcement
Meeting of Creditors Liquidation Notices - Section 98 of the Insolvency Act 1986 - 31 July 2014
Appointment of Administrators Notices - 31 July 2014
Winding Up Petitions (Companies) Notices - 31 July 2014
Profit warnings reach highest first half total since 2011, reveals EY
“The Sheriffs are coming” is back at 7 pm on 4th August!
Kerry Group takes e-Invoicing global with Tungsten Network
Euler Hermes 2014 half year results: Euler Hermes holds its course
Robinson Way appoints new head of collections
Meeting of Creditors Liquidation Notices - Section 98 of the Insolvency Act 1986 - 30 July 2014
Follow Us On
Follow us on Twitter Check out our blog posts Go to our LinkedIn profile Subscribe to our RSS feed

Shopping Cart
Items: 0 Total: 0.00
View items in your shopping cart Checkout
 


Upcoming Events
Collections Team Management
Credit Policy Workshop
Insolvency & Bankruptcy
South Leicester College Professional Programmes Information Evening
Debt Recovery from end to end
Search for more events…

Top Products
Experian Gold Limited Company Report
Experian Silver Non-limited Business Report

Special Offers
In Focus UK Credit Reports
 
 

Homepage | Feedback | About Us | FAQs | Sitemap | Terms & Conditions | Privacy Statement | Help Page | Advertising