Four years ago Jersey acted to stop high street retailers like Tesco from avoiding UK tax by using the Island as a post box for VAT-free online sales. It is reported the supermarket giant is using the trading name Tesco (Jersey) Ltd on its website.
Last week the Guardian newspaper reported that Tesco had returned to a ‘multi-million pound tax dodge’ four years after Jersey outlawed websites like Tesco’s from selling VAT-free CD and DVDs from the Island.
Action was taken by the then Economic Development Minister, and now Treasury Minister, Philip Ozouf, to stop UK retailers from exploiting what is termed low value consignment relief.
The Senator said that he had read the Guardian article and that the Jersey authorities would be asking their Guernsey counterparts about it. ‘We are going to find out from Guernsey what is going on,’ he said.
