Treasury ‘must return £7m of VAT from phone-in scandal’

£7m of VAT revenue brought in from a £45m phone-in scandal should be
returned, MPs have demanded.

The demand was made after it emerged that viewers of GMTV, Richard and
, and a number of ITV programmes had wasted £45m entering contests that
they had no chance of winning. Broadcasters have promised to return the cash if
punters make claims.

Unclaimed cash would be given to charity, broadcasters added, but any such
donation will not qualify for a VAT refund, swelling the Treasury’s coffers.

Adam Price, a Plaid Cymru MP, told
The Times:
‘It is tantamount to the proceeds of crime. There is no case for the Treasury
holding on to the money.’

Nigel Evans,a member of the Commons Culture Media and Sport Select Commitee
added: ‘The Treasury must not become the only beneficiary of this scandal.’

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