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Anorak | VAT Fraud And A Tax Bomb

VAT Fraud And A Tax Bomb

by | 26th, November 2008

IT’S always nice to see the faint glimmerings of comprehension in the old media when it comes to justifying their massive expenditure on business and financial journalists, but I’m disappointed in so many of them missing the blindingly obvious on the 2.5 % VAT reduction.

Few, if any, appear to have noticed that the reduction does not require every business to recalculate every price; this is not the place to dwell upon the joys of input and output, but every business in the country could keep its prices to retail customers just as they are, perfectly legally. All it has to do is increase its pre-Vat prices by a small amount.

It does, however, reduce the amount of VAT those businesses would have to pay to the Tax Persons by £12.5 billion. It looks as if the Chancellor, England’s Darling, is using the Nelsonian strategy of turning a blind eye.

He’s also setting up squads of Tax Persons to ease the path of 3.6 million small businesses, who employ 60% of the private sector

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Posted: 26th, November 2008 | In: Money Comment (1) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink