VAT FRAUD
Letter from Rt Hon Dawn Primarolo MP,
Paymaster General, HM Treasury to the Chairman
Please find attached an Explanatory Memorandum
(not printed) concerning a recent Commission Proposal allowing
the UK to introduce a targeted reverse charge to combat VAT fraud.
This proposal represents an important development
in our fight against VAT fraud and the Commission's agreement
to our derogation request is welcome. The Proposal was received
on 29 September 2006 and I am urging the Finnish Presidency to
progress this as quickly as possible. I appreciate that this does
not allow a great deal of time for the scrutiny process but I
hope you will understand the importance of being able to introduce
this measure into UK legislation at the earliest opportunity.
Our estimate is that the Proposal may go to ECOFIN on 7 November
as an I/A point.
I am aware that there is very little time before
ECOFIN, and you should be aware therefore that the Government
may be asked to agree this proposal before it has cleared scrutiny.
Although regrettable I hope you will understand this is unavoidable
in the circumstances.
12 October 2006
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