Beam me to Planet Gore !
Posted on 08/05/2009 5:37:52 AM PDT by AKSurprise
Drastic action to stop a potential multi-billion fraud was taken by the Treasury yesterday when it imposed a zero rate of value added tax on carbon credits, the allowances issued as part of a scheme to help curb greenhouse gas emissions.
Losses to the exchequer so far are unlikely to have exceeded a few hundred millions pounds but the Treasury said in a statement that "there now exists a substantiated and increasing risk of the UK becoming a major target for the fraudsters during the next few months".
The move is highly unusual because changes to VAT need to be agreed by the European Parliament. The decision to press ahead with the change without prior permission reflects the severity of the threat posed by the fraud. Similar steps have already been taken by France and the Netherlands.
The ease of trading carbon credits means that the fraud, if unchecked, could have been even more costly than similar VAT frauds committed with mobile telephones and computer chips. These cost many billions, but have now been substantially reduced by changes to the VAT system.
(Excerpt) Read more at ft.com ...
Hey, only the government can use fraud to get our money!!!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.