Channel firms urged to sign HMRC petition

Petition creator hopes for 200 signatures as businesses suffer from anti-VAT fraud policy

A former mobile phone trader has launched a petition against HM Revenue and Customs (HMRC) campaigning against its “inefficient and unsustainable” Extended Verification anti-VAT fraud policy.

Monty Jivraj, previously an employee of Olympia Technology, which recently won a tribunal appeal against HMRC (CRN, 10 March), is hoping to attract at least 200 signatures.

The petition the second launched by Jivraj in two years reads: “Extended Verification has imposed a ‘significant burden’ on UK businesses. We urgently ask the prime minister and the chancellor to take action and repay UK businesses that are suffering at the hands of HMRC.”

Jivraj, who now works as a business and telecoms consultant to legal firm Ashton Law, said: “Traders that have won tribunal cases against HMRC are still not being repaid because the case has gone to appeal. How long can this battle go on?
“We need people to sign this petition and to include their company names and addresses to give it more legitimacy. If we get 200 signatures, we will get a response.”

Anthony Elliot-Square, director of industry body the Federation of Technological Industries, said: “HMRC is playing with people’s livelihoods with this policy and is attacking the whole IT industry.”

An HMRC representative said: “HMRC has a duty to verify VAT repayment claims. The UK courts have consistently supported HMRC’s policy, accepting that lengthy verifications are justified, given the sums involved and the complexity of supply chains.”

In related news, HMRC has lost a High Court appeal over a case involving mobile phone trader Brayfal. The government body wanted to add further evidence during a VAT tribunal hearing, but was refused by the judge and subsequently appealed.
Brayfal is owed a seven-figure VAT repayment from HMRC. The tribunal will now continue and HMRC must pay Brayfal’s expenses in relation to the High Court appeal.

To sign the petition visit: http://petitions.pm.gov.uk/InputTax/

Jivraj is also urging people to fill out the web form which can be found at: http://www.ipt.cc/WebPetition/index.html