Companies are set to miss out on hundreds of millions of pounds in unclaimed
VAT next year, as multinationals pour money into the 2006 World Cup in Germany.
The tournament will highlight a longstanding problem for companies, which are
frustrated by tax authorities dragging their feet on claims.
Ann Jones, managing director of Lowendal UK, which processes such claims,
said that with at least half a billion pounds being poured into Germany in
sponsorship and other expenditure, companies including Gillette, Mastercard,
Coca-Cola and Fuji were likely to miss out on substantial tax savings.
VAT is only payable at the point of the end user of a product, and not
earlier in the process. Companies pay the charge as a matter of course, though,
and then reclaim it later. A host of high-profile companies are set to be
heavily involved in the competition.
Tax advisers say that even simple claims in the UK, which has one of the more
advanced schemes for reclaiming VAT in the EU, can take 18 months.
Making Tax Digital will impose significant additional tax compliance costs on small businesses for little or no medium term benefit, tax and small business experts told MPs
The drive towards a fully digital tax regime is an admirable one, but mandation is simply wrong, according to one of the UK's most senior tax technology practitioners - Paul Aplin
HMRC has won its tenth successive case against tax avoidance schemes promoted by NT Advisors. The Court of Appeal has ruled that NT ... read more
HMRC is continuing to ramp up the number of raids on premises it carries out as part of criminal investigations, searching 761 properties in the last year