FPB reports HMV and Guernsey Government to Treasury and Customs
The Forum of Private Business (FPB) is reporting music superstore HMV and the Guernsey Government to the Treasury, National Audit Office, and HM Revenue and Customs after it emerged the retail giant is setting up a website on the Island to sell CDs and DVDs VAT-free.
The FPB said HMV’s move to Guernsey set alarm bells ringing coming just weeks after the Jersey Government announced that no more major retailers would be granted licenses to sell goods VAT-free from their island.
The Jersey Government crackdown was in response to criticism from the FPB that independent retailers in Britain are being fatally undermined by retail giants – like Asda, Tesco, Woolworths, Boots and Amazon – which are selling goods from the Island.
The FPB’s Chief Executive Nick Goulding said he already had major concerns that the Jersey Government clampdown was acting after the horse had bolted as it was not kicking out the retail giants with existing licenses.
Following the FPB’s meeting with the National Audit Office in June, it has pledged to investigate the amount of tax being lost by the Government through the Channel Islands as part of a study it is undertaking on e-commerce. The independent watchdog, which monitors Government spending, has already begun interviewing businesses and officials at HM Revenue and Customs with a view to launching a full scale investigation in the summer. A full report is expected by late summer.
