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"Would I have made cash payments to avoid VAT? No, I certainly would not".
OK, I have occasionally paid workmen in cash to avoid VAT.
Magazines, along with books and newspapers, are normally zero-rated for VAT, and this meant Sky could avoid VAT on a small but significant percentage of revenue.
"Would I have made cash payments to avoid VAT? No, I certainly would not". Treasury sources moved to play down the significance of Gauke's remarks.
One suggestion has been that only those signing up to the new body would be officially classed as newspapers and able to avoid VAT on sales.
He cited an estimate that up to 96 per cent of mail order sales of DVDs and CDs were being dispatched offshore to avoid VAT.
Similar(44)
KPMG devised a scheme for an amusement arcade company to avoid paying VAT on its operations.
This allowed member states to avoid collecting VAT on low-value imports where administrative costs were deemed excessive when set against tax receipts they generated.
From ways to avoid paying VAT on superyachts and private planes, to brain-achingly complex structures designed to help multinational companies – they are all in the files.
There is no official figure for Britain's hidden economy, in which companies avoid paying VAT and workers do not pay tax, but the loss to the Treasury has been estimated at £2bn a year.
Ed Balls, the shadow Chancellor and an increasingly powerful force in the Shadow Cabinet, proposed extending the 50p rate down the income scale to £100,000 (to help avoid raising VAT to 20 per cent).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com