How do you report a potential Tax dodger?

[NevilleJones]

I used Amazon Market place to order something (not directly from Amazon). On receiving the items I noticed a few odd things:

A) Return address:
Industriestrasse 3
CH-8575 Burglen
Switzerland

B) Value of order:
I paid £10.95 yet on the import/export Note it states £4.96.

C) Service Charge:
In the invoice there is a note "All items include a service charge of up to £5.99 or Euro equivalent"

D) MyMemory HQ in Jersey
As stated on (can't add link, so search: ) "mymemory co uk contactus", MyMemory is based in Jersey.

The above details suggest to me that MyMemory are avoiding taxes by operating in "Tax Havens" and by reporting the value of the item by over 50% by excluding the service charge.

I have prepared the following letter:

Dear Sir/Madam

I have bought the above item and after receiving it through the post I noticed some odd information about this order, so I spent some time digging around on the internet.

Looking at the invoice I was quite curious how you could sell a product at such a competitive price when this item came from Switzerland? Again looking at the invoice I do not see any information about the shipping cost and the total UK TAX paid for this item, when typically most invoices would make this clear.

I search for "My Memory" on the internet and I found your website: mymemory.co.uk and started to look at the information you had available about yourself. I noticed a worrying fact that you are based in Jersey.

You should be very aware of the recent movement by the UK public about immoral Tax practices. “Tax Havens” and “Transfer Pricing” are some of the current Hot Potato terms used these days and I can see you operate from Switzerland and Jersey, both known as “Tax Havens”. I personally have no problem with Switzerland and Jersey’s tax policies; however I am concerned that I am ordering a product that I thought was from a UK company only to find out the item was shipped from Switzerland and the HQ is in Jersey.

As I am concerned about my country in the current climate of austerity which also means services are dwindling and therefore there is a growing public awareness of these immoral Tax practices, I would like to know where you stand on this matter.

In addition I would like to know the total UK tax for this item and whether the massive service charge of £5.99 (over 50% of the order) was subject to UK Tax.

Your cooperation with regard to this would be much appreciated and if you return with a satisfactory answer, I will consider using your shop again.

However if you do not seem to be willing to help me or if your response is weak and does not convince me that you are paying your UK Tax in full I will have no option but to contact HMRC, the Media and Social Networks amongst others to A) find out the facts and B) potentially expose any wrong doing!

Regards


Neville Jones

---

Please can you give me some guidance:
1) is this letter good enought?
2) is there some I can ask for help?
3) is there a website with template letters for this type of case?

Any advice will be much appreciated.

Thank you in advanced!


Regards

 

[OldWelshGuy]

They have priced it as such in case the customs guys opened it and charged YOU import duty.

I take it then that as you are so against this behaviour that you have returned the item?

You have, .....

Haven't you?.......

 

[MikeJ]

My Memory state on their Amazon page that they're shipping from Jersey.

http://www.amazon.co.uk/gp/aag/deta...3G8C2ARO7P&seller=AZSR40NZ6UYCN#aag_legalInfo

 

[NevilleJones]

The package in question is still not opened (it is still in it plastic rapper), I have opened the shipping package and reading the shipping note, which got me to start questioning this.

I want to make sure I do the right thing so I am asking these questions, I don't know if they are or not avoiding tax.

I don't mind sending the product back, but I don't want to sit about like I did not know something.

I have tried to contact HMRC, but I can't find an email address.
I tried to phone them, but I go through a loads of options that I hope are the right ones and then get a message like "We are too busy" and then hangs up.
I have tried to use there online form but it is more of a pain then of any help. It is pages long, and you fill it in and then you get errors "alpha caricters only, less then 2000 chars, cant do this , cant do that", it is really bad and off putting.

If you were in my position what would you do?

do you know any organization that could help?

 

[GraemeL]

by reporting the value of the item by over 50% by excluding the service charge.

I will have no option but to contact HMRC, the Media and Social Networks amongst others to A) find out the facts and B) potentially expose any wrong doing!

Any advice will be much appreciated.

Before you say anything like this in public, be very sure of the facts and the law regarding defamation.

Oops. Too late!

G

 

[NevilleJones]

My Memory state on their Amazon page that they're shipping from Jersey.

I cant show links (link removed!)

My package has a return address of Switzerland? Does that not indicate it came from Switzerland?

After I received the goods I found out that this came from a "Tax Haven".

Thanks for your help MikeJ but I do know how to search the internet I have a 2.1 degree in Computer Science. I have spent quite a bit of time on this matter already.

I really need some answers to my questions, such answers will be greatly appreciated.

 

[Posilan]

I'm not seeing the problem here about the Switzerland bit. It sounds like My Memory are using drop shipping to supply the items and the supplier is in Switzerland.

Also, Jersey isn't in the UK as you state in the "letter".

Not sure about the "service charge" though - wonder what would happen if you had a claim against an item? They may try to get out of a full refund because of the service charge...

Steve

 

[NevilleJones]

Before you say anything like this in public, be very sure of the facts and the law regarding defamation.

Oops. Too late!

G

I have given only the truth and I am questioning what can I do?

I have not made any claims?

 

[Psl]

I used Amazon Market place to order something (not directly from Amazon). On receiving the items I noticed a few odd things:

A) Return address:
Industriestrasse 3
CH-8575 Burglen
Switzerland

B) Value of order:
I paid £10.95 yet on the import/export Note it states £4.96.

C) Service Charge:
In the invoice there is a note "All items include a service charge of up to £5.99 or Euro equivalent"

D) MyMemory HQ in Jersey
As stated on (can't add link, so search: ) "mymemory co uk contactus", MyMemory is based in Jersey.

The above details suggest to me that MyMemory are avoiding taxes by operating in "Tax Havens" and by reporting the value of the item by over 50% by excluding the service charge.

I have prepared the following letter:

Dear Sir/Madam

I have bought the above item and after receiving it through the post I noticed some odd information about this order, so I spent some time digging around on the internet.

Looking at the invoice I was quite curious how you could sell a product at such a competitive price when this item came from Switzerland? Again looking at the invoice I do not see any information about the shipping cost and the total UK TAX paid for this item, when typically most invoices would make this clear.

I search for "My Memory" on the internet and I found your website: mymemory.co.uk and started to look at the information you had available about yourself. I noticed a worrying fact that you are based in Jersey.

You should be very aware of the recent movement by the UK public about immoral Tax practices. “Tax Havens” and “Transfer Pricing” are some of the current Hot Potato terms used these days and I can see you operate from Switzerland and Jersey, both known as “Tax Havens”. I personally have no problem with Switzerland and Jersey’s tax policies; however I am concerned that I am ordering a product that I thought was from a UK company only to find out the item was shipped from Switzerland and the HQ is in Jersey.

As I am concerned about my country in the current climate of austerity which also means services are dwindling and therefore there is a growing public awareness of these immoral Tax practices, I would like to know where you stand on this matter.

In addition I would like to know the total UK tax for this item and whether the massive service charge of £5.99 (over 50% of the order) was subject to UK Tax.

Your cooperation with regard to this would be much appreciated and if you return with a satisfactory answer, I will consider using your shop again.

However if you do not seem to be willing to help me or if your response is weak and does not convince me that you are paying your UK Tax in full I will have no option but to contact HMRC, the Media and Social Networks amongst others to A) find out the facts and B) potentially expose any wrong doing!

Regards


Neville Jones

---

Please can you give me some guidance:
1) is this letter good enought?
2) is there some I can ask for help?
3) is there a website with template letters for this type of case?

Any advice will be much appreciated.

Thank you in advanced!


Regards

If you don't like how a company does business then don't deal with them, or undertake better due diligence on the companies that you want to deal with, it's very simple.

You are not the taxman and just because it is 'immoral' in your view why get all busy about it? If the company is adhering to the tax laws of the country it trades from then what concern is it of yours?

Have you returned the item or not, as asked previously?

And, as also has been pointed out, defamation is not the way to go.

 

[NevilleJones]

I'm not seeing the problem here about the Switzerland bit. It sounds like My Memory are using drop shipping to supply the items and the supplier is in Switzerland.

Also, Jersey isn't in the UK as you state in the "letter".

Not sure about the "service charge" though - wonder what would happen if you had a claim against an item? They may try to get out of a full refund because of the service charge...

Steve

As far as I am aware if you trade in the UK even over the internet you have to pay the UK tax, the note I got indicates no taxes (that is nothing mentioned about tax).

I bought this on amazon UK site so I think they should pay the full tax.

Please tell me I am wrong or right?

 

[NevilleJones]

1) Have you returned the item or not, as asked previously?

2) And, as also has been pointed out, defamation is not the way to go.

A1) I have not opened the item and I have not sent it back.

I want to know what is the best thing I can do before I start trying to ask for a refund.

A2) I want to report them and leave it to the authorities to make the decision. if they have done nothing wrong then fine, if they are immoral and the taxman start asking question the great.

All the talk about Starbucks (and others) in recent times has made us all think about these problems in a big way.

I find it very disturbing there is almost nothing out the to help someone like me with my concerns.

 

[SqueakyHinge]

As far as I am aware if you trade in the UK even over the internet you have to pay the UK tax, the note I got indicates no taxes (that is nothing mentioned about tax).

So if i am in america and i sell you something i need to pay tax in america and tax in your country???

I bought this on amazon UK site so I think they should pay the full tax.

Please tell me I am wrong or right?

The person who sold you the item or drop shipped it will pay tax in the country they are in.

If your item was of larger value you would have paid import duty to the uk, but not for small items.

 

[Esk247]

They will have sent it to you as a 'gift' through customs, so you don't have to pay the import duty on it, they've saved you money in some respects.

If you have a problem with it being 'immoral' send the product back to them and tell them your reasons. They will refund you.

They are not operating illegally at all, it just happens that the product is dispatched from a warehouse in Switzerland.

Kicking up a fuss won't help at all as they are acting perfectly above the law from what i can see.

 

[uk_biz]

Probably a drop shipper, its a common business many online traders use.

 

[kulture]

The only thing they may have done wrong, would be understating the value of the item and perhaps fraudulently marking the package as a gift. You should have paid VAT on import.

 

[vvaannmmaann]

Maybe the OP is confusing "avoidance" and "evasion" ?

 

[Grafika]

Or maybe the seller is actually a competitor of the OP's and they are digging for dirt. I'm thinking he can't have wanted the package that much to check where it's come from first and then leave it unopened for days... And then spend so much time and effort asking for advice and organisations that can assist... I do love a good conspiracy theory

 

[NevilleJones]

I have done some reading:

hmrc [dot] gov [dot] uk [slash] customs [slash] post [slash] internet.htm

Goods ordered online from outside the EU
If you buy goods online from outside the EU for delivery to the UK, you'll have to pay Customs Duty and Import VAT on top of the purchase price if the goods are above a certain value - though Customs Duty is waived if the amount of duty payable is £9 or less.

hmrc [dot] gov [dot] uk [slash] customs [slash] post [slash] buying.htm

Tax on goods bought from a non-EU country
...
Alcohol and tobacco
...
Perfume and toilet water
...
All other goods
If you order or send purchased goods other than alcohol, tobacco, perfume and toilet water from a country outside the EU then you:
don't have to pay Excise Duty
may have to pay Customs Duty on goods with a value that exceeds £135
will have to pay import VAT on goods with a value that exceeds £15
Note that on all goods from outside the EU, Customs Duty is waived if the amount of duty calculated is £9 or under.

 

[patientlady]

You should have paid VAT on import.

Not from Jersey if it is a DVD or CD, however this loophole is being closed. Jersey are fighting tooth and nail on UK interference in there affairs, and i do have an amount of sympathy in there views

 

[NevilleJones]

It seems to me that they have operated with in the law.

However, I would pay more attention to where something comes from and if there is a UK equivalent, I should on moral ground buy from the UK firm to help the UK economy, especially in these time of austerity.

 

[NevilleJones]

Or maybe the seller is actually a competitor of the OP's and they are digging for dirt.

great idea but no.

I am actually concerned about the UK economy and know we are losing billions a year on aggressive tax avoidance, I have seen figures stating £10, £25, £69 or over £100 billion depending on the source.

I'm thinking he can't have wanted the package that much to check where it's come from first and then leave it unopened for days... And then spend so much time and effort asking for advice and organisations that can assist... I do love a good conspiracy theory

I believe I should do what is moral right, if this mean not opening a packet for a few day so be it.

 

[NevilleJones]

The only thing they may have done wrong, would be understating the value of the item and perhaps fraudulently marking the package as a gift. You should have paid VAT on import.

Thank you for your response!

I thought that might be true.

I also found this on HMRC:

Make sure the supplier completes an accurate Customs Declaration
Goods arriving in the UK from outside the EU by post or courier must have a Customs Declaration fixed to the package - completed by the sender. The declaration should include:
a description of the goods
their value
whether they are gifts, commercial or personal items
Some websites will offer to show a value on the Customs Declaration that's much lower than the actual price paid so that you don't have to pay duty and/or VAT when the goods enter the UK. This is wrong: if you're ordering goods over the Internet, it is in your own interest to make sure that the sender abroad makes a complete and accurate declaration. If no declaration is made, or the information is inaccurate, the package may be delayed whilst the UK Border Agency makes further enquiries, or in some cases the package and its contents may be seized and as the importer of the goods you will be liable for any charges.

 

[SqueakyHinge]

The British people are renowned for not caring a toss where goods come from. We are all about price. If the price is right and obtaining the goods is convenient we will do it, no matter how much people preach that we should be 'buying british'.

I buy anything from anywhere personally.

With the recent media exposure it wouldn't surprise me if some of the big brands exposed for aggressive tax avoidance lose revenue bit it wont be long until people stop caring and start buying again. That's what we do in this country...

I guess it is also quite protectionist to be concerned that anything you buy must be made or taxed in the UK. We are in a global economy afterall. If everyone started buying their own goods it wouldnt really help anything would it.

 

[crosbtmrkt]

you are obliviously the customer from hell you have tried the customs website tried ringing them not even opened what you bought and now your on a forum writing about it and using there company name and your not even sure they are doing any thing that wrong.


sounds like its ruined your week and you cant sleep at night i got to make a mental note about dealing with anyone called Neville Jones.

 

[PrestonLad]

you are obliviously the customer from hell you have tried the customs website tried ringing them not even opened what you bought and now your on a forum writing about it and using there company name and your not even sure they are doing any thing that wrong.


sounds like its ruined your week and you cant sleep at night i got to make a mental note about dealing with anyone called Neville Jones.

That cuts out about 1% of the welsh population that you won't do business with then!

 

[daud]

wow.

busybody.

 

[internetspaceships]

Is this just a complete wind up or have you really got your priorities mixed up completely?

 

[dynamic08]

This guy is a complete and utter idiot! Here is a tip for you... GET A LIFE!

 

[Mitch3473]

OP, I feel your pain, I also hate it when things like this happen. I normally find that a strongly worded letter to the editor of The Ledbury Reporter does the trick. I now sleep soundly at night