9am Lowdown: Gauke criticises airport VAT scam
Morning! Here’s the news.
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Gauke criticises airport VAT scam
Treasury minister David Gauke has lamented the fact that the savings shops make through VAT discounts at airports haven’t been passed on to customers, rather being used to boost profits, reports The Independent.
Gauke spoke after the Independent revealed that many airport stores are asking passengers to present their boarding cards when making a purchase. The information on the cards is then used to claim VAT relief on sales to travellers leaving the EU.
The practice means that retailers do not pay 20% VAT on goods sold to customers travelling outside the EU.
Gauke told the Independent: “The VAT relief at airports is intended to reduce prices for travellers, not as a windfall gain for shops.
“While many retailers do pass this saving on to customers, it is disappointing that some are choosing not to. We urge all airside retailers to use this relief for the benefit of their customers.”
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Co-op Bank escapes regulatory fine
The Co-operative Bank has escaped a fine from regulators investigating the banks missteps throughout 2009-13 that led to its bailout.
In its statement, The FCA said the Co-op had misled investors, which would normally mean a fine.
Georgina Philippou, the FCA's acting director of enforcement said it was a serious matter, but said exceptional circumstances meant public censure was the appropriate and proportionate response, reports the BBC.
Ms Philippou said: “It is vitally important that Co-op Bank’s capital resources are directed towards improving its resilience.
“Co-op Bank’s statements about capital in the 2012 financial statements were misleading.”
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Taiwan brings in typhoon tax relief
There are many ways to claim to tax relief in The UK, but a typhoon is not one of them. Taiwan’s Ministry of Finance (MOF) has arranged for various tax relief measures to be provided to individuals and businesses that were caught up in the destruction caused by Typhoon Soudelor last weekend, reports Tax News.
The MOF has confirmed that income tax exemptions are available to any people that were affected the tempest’s destruction.
However, taxpayers may also be eligible for other types of tax relief. The MOF pointed in particular to relief available from business tax, excise tax, tobacco and alcohol tax, housing tax, land value tax, vehicle license tax, and entertainment tax.