APPENDIX 3: CALL FOR EVIDENCE
The Sub-Committee, under the Chairmanship of Baroness
Cohen of Pimlico, in the light of the Government's request to
the Commission to apply for a derogation from the directive on
turnover taxes to introduce a "reverse charge" system
for certain products, has decided to broaden its continuing inquiry
in the issues surrounding VAT Missing Trader fraud. The inquiry
will seek to address the following key questions:
- What impact does this fraud have on the internal
market?
- What are the measures currently applied in the
UK and other Member States to combat this fraud and what are their
weaknesses?
- The Commission has suggested measures including
increased cross-border liaison by tax and law enforcement authorities
and Governments, improved risk management, and mutual assistance
by Member States wishing to recover unpaid taxes. Are these mechanisms
adequate?
- Are Member States, within the context of the
internal market and the globalised economy, capable of fighting
individually against this fraud or is it right for the Commission
to bring forward proposals on their behalf?
- Is it necessary to simplify or restructure the
VAT system to prevent this type of fraud? If so, how might this
be done?
- Does the adoption of measures to fight VAT fraud
at the Community level undermine Member States' control over the
functioning of national fiscal systems?
- What would be the benefits and costs of moving
from the current destination system to an origin system?
The Sub-Committee would welcome written comments
on these issues. Witnesses who have already submitted material
following our earlier call for evidence, are not required to repeat
earlier submissions but are invited to submit additional evidence.
GUIDANCE TO THOSE SUBMITTING WRITTEN EVIDENCE
Written evidence is invited in response to the questions
above, to arrive by no later than Wednesday 17 January 2007.
The questions above cover a broad range of topics
and there is no need for individual submissions to deal with all
the issues. Evidence should be kept as short as possible: submissions
of not more than six sides of A4 paper of free-standing text,
excluding any supporting annexes, are preferred. Submissions longer
than this should include an executive summary. Paragraphs should
be numbered.
Evidence should be sent in hard copy and electronically
to the addresses below.
Evidence should be attributed and dated, with a note
of the author's name and position. Please state whether evidence
is submitted on an individual or corporate basis.
Submissions will be acknowledged. Evidence becomes
the property of the Committee, and may be printed or circulated
by the Committee at any stage. Once you have received acknowledgement
that evidence has been received, you may publicise or publish
your evidence yourself, but in doing so you must indicate that
it was prepared for the Committee.
Any enquiries should be addressed to: Simon Blackburn,
Clerk of Sub-Committee A, Committee Office, House of Lords, London
SW1A 0PW; telephone 020 7219 3616; fax 020 7219 6715; e-mail blackburns@parliament.uk.
This is a public call for evidence. You are encouraged
to bring it to the attention of other groups and individuals who
may not have received a copy directly.
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