From: Mr X 
Newsgroups: uk.finance uk.legal uk.business.accountancy
Subject: Re: Splitting a business to avoid paying VAT
Date: 14 Jun 2005 04:20:02 -0500

In article <19a171cb565e7c979175e283fdc8a650.125090@mygate.mailgate.org>
, Troy Steadman  writes

>"bigbrian"  wrote in message
>news:8b7ra1hd7ll8nmegpcn456lmtoemqkrh3t@4ax.com
>> 
>> I know of one business, for example, a mail order operation, that
>> undertakes a significant level of work on behalf of a client base 
>> that is unable to reclaim VAT. They have set up a separate company, > in 
>conjunction with a printer, to undertake printing and subsequent
>> mailing of the material. The new company,set up specifically for the
>> purpose, is not VAT registered, so the clients get the material at a
>> lower effective cost. Do you contend that this is VAT fraud? 
>
>> ...I can
>> tell you that the scheme has been not only endorsed by, but was
>> actually suggested by, a VAT compliance officer at a routine visit to
>> the company. Its since been operating for a number of years, and has
>> been reviewed by C&E without any problem

Top-posting corrected...

>I hope brian won't mind me throwing this wider to see if 
>the VAT experts have any opinion. It is extraodinary how 
>many people would consider this as downright fraud yet 
>it's a practice which other businesses merrily
>carry on under the approving gaze of the VAT man.

Is it really any different to Tesco's setting up a Jersey operation to
avoid having to charge VAT on CD's and DVD's sold via the Tesco website?
-- 
Mr X