Cut Price Loophole Closed On CD's?!

Claire_DC

http://news.bbc.co.uk/1/hi/world/europe/jersey/4759422.stm


Not sure if this is the right forum to post in so apologies in advance if it isn't.. but i thought this may be of interest to some of you.

pin

A lot of politics involved in this (but I can't go into too much detail on this). The way the companies are set up in Jersey means that the Jersey government is not getting much tax out of them. A main beneficiary in all of this has been Jersey Post, as its the company delivering all the goods.

Play.com will benefit greatly as well, however it is a solidly Jersey company.

stevebananer

Surprised there was not more response to this news.
It probably will be good news for Play, but will it be as good for us?
Removing some of their competition isn't going to encourage them to keep their prices as low, is it?
Will it affect other companies such as Sendit and CDWow, or are Jersey just aiming at the UK based supermarkets?

Claire_DC

I'm hoping there's going to be at least *some* competition, otherwise play have no reason to keep their prices as low as they do!!

Could spell bad news for all us bargain hunters!!

redux

I wonder why they haven't taken on the car manufacturers some time in the last 20 years? They or their agents have also been exploiting a tax loophole, temporarily registering cars as hire cars in the Channel Islands, then selling them on via UK dealers.

pin

Jersey has introduced VDU re cars. Also in general cars are more expensive than in the mainland.

Re the tax loophole, it is a decision by Jersey, not by the UK government. The reason the Jersey government has given the publicity that has been attracted as a result is the wrong sort of publicity Jersey wants to attact and Jersey is interested in supporting home grown industries rather than the likes of Amazon, Tesco's etc.

Also the Guernsey government has said it won't be welcoming the likes of Amazon, etc.

TTT_2

I work for a channel islands based company and have a bit knowledge on the system. CDWOW will not be affected or any other companies as long as they are not based in the channel islands.
Next time you order from an offshore company you will notice that there is a customs declaration on the parcel.The vast majority of offshore companies sell goods below the magic £18 threshold which is the point at which goods become liable for VAT on import.
While Jersey and Guernsey have both said that the sort of 'shell' operations of big supermarkets supplying CDs and DVDs will not be welcome, genuine companies will have nothing to worry about.