VAT cheats should be jailed

Traders who charge VAT when they are not registered and pocket the tax should be jailed, an MP has said.

Ian Liddell-Grainger, chairman of the All-Party Parliamentary Taxation Group, described the scam as "blatant fraud".

He said the penalties for cheating on VAT are currently very low - usually no more than double the tax charged.

HM Revenue & Customs (HMRC) said it was well aware that VAT numbers could be used for illegal purposes and monitored their use closely.

'No deterrent'

Mr Liddell-Grainger, the Conservative MP for Bridgwater, told BBC Radio 4's Money Box: "Everyone knows it is going on but it is hard to detect. Now VAT has gone up to 20% it will become much more high profile."

And he called on the government to increase the penalties.

“Start Quote

Sourcing your tradesman through a recognised trade association is a good way to dramatically reduce the risk of hiring someone dishonest”

End Quote Rick Crees Association of Plumbing and Heating Contractors

"Double the tax is no deterrent. If you've got a tax bill of £30, that is £60. In the worst cases it needs to be a custodial sentence, and certainly up to 10 times the tax," he said.

"This is blatant fraud. You are going into people's homes, lying and using your position to extort money out of people. In any other walk of life you would be jailed."

The fraud is simple. A trader either does not register for VAT or, if they are registered, they deregister for VAT. But they still add 20% onto the bill and call it VAT. Instead of passing that amount on to the tax authorities, they pocket it themselves.

Building firm boss Nigel Leck told the BBC that such practices were growing and he now checks every invoice he gets from contractors.

Mr Leck, who runs Property Presentation Services in Warwickshire, said: "Twice we have discovered people trying to charge our customers VAT when they are not registered, or they have deregistered.

"They know they are not registered and they're still charging the VAT."

Mr Leck says he now always checks all the paperwork from every company.

He uses a European Union website, which checks a VAT number and shows whom it is registered to. Although intended for businesses doing cross-border business, it will provide the answer instantly to anyone.

Alternatively, individuals can call an HMRC helpline - 0845 010 9000 - to check registration. There is also an HMRC hotline to report fraud on 0800 595 000.

'Damaging industry'

Mr Liddell-Grainger recommends using these services rather than challenging someone who is in your home and expecting payment for a bill showing VAT.

"People can check on the website to see what the situation is, and report it to HMRC. That hotline should be used," he said.

Rick Crees, a spokesman for the Association of Plumbing and Heating Contractors, said the practice was not widespread.

"Any sole trader, whatever their business, could be trying this trick. It is perfectly possible that plumbing and heating engineers are among those trying it. This kind of dishonesty is damaging to our industry," he said.

"Sourcing your tradesman through a recognised trade association is a good way to dramatically reduce the risk of hiring someone dishonest."

Any trader whose turnover exceeds £70,000 must register for VAT. Those with lower turnovers can do so, but do not have to.

"HMRC is well aware that VAT numbers can be used for illegal purposes and we monitor their use closely," a spokesman for HMRC told Money Box.

"We have a range of penalties, including criminal prosecution available to tackle any abuse."

Article By Sonny Leong Chinese For Labour

I am in total despair. Every time Michael Gove opens his mouth, extravagant foolishness and ignorance spews from it.

In a recent Telegraph article, he says.

I was in the Far East last month, to see what I could learn …. where I am happy to confess I’d like us to implement a cultural revolution just like the one they’ve had in China. Like Chairman Mao, we’ve embarked on a Long March to reform our education system.

His ignorance of history is baffling and a cause of concern. Where do we get these politicians?

The Cultural Revolution was a violent mass revolution resulting in social, political and economic upheaval with over 30 million deaths. Mao singled out his enemies – landlords, rich peasants, intellectuals. In the fight against “class enemies” and “bourgeois reactionaries,” teachers, people with a college degree were targeted. Entire schools of elite musicians and teams of athletes were sent to labour camps. Intellectuals were kept in prisons.

In the Cultural Revolution, learning was a crime. The crackdown on teachers, professors and intellectuals was particularly nasty. In secondary schools students humiliated and denounced their teachers. In high schools, teachers wore dunce caps and spent the whole day reciting “I am a demon” in front of classrooms filled with mocking students.

Is this what Gove is advocating?

If this is a case of “metaphorically speaking”, then his analogy is pure contempt for the Chinese in Britain. Many have loss relatives and family during that period in history, and many are just coming to terms with the horrific memories of that period. The frequent usage of Chinese analogies by politicians recently is nothing short of repugnant and gut-wrenching to listen to.

Having spent only a few days in the Far East does not make Gove such an expert on education there. Like Manuel in Fawlty Towers – he knows nothing!!

Yes, teachers and students in Shanghai and Singapore have to be congratulated in coming out tops in a recent leading global study of secondary school performance in maths and science. This is no surprise at all – to really understand why – one needs to look inside a Chinese family.

The pressure on these kids to perform well comes from wthin the family, school and society. Chinese students work extra long hours on school days and continue to have classes on weekends and holidays. These children are victims of a test-oriented education system. Failures in such tests bring shame to themselves and families leading to the high suicide rates amongst them.

Whether it is maths or reading, the more you practice, the better you can get. They are taught to memorise, parrot fashion and regurgitate what they have studied for exams. Any analysis, discursive or exploring other concepts or ideals are alien to their learning processes.

These students fail abysmally at non-standardised tests – open-book; open-notes; Multiple Choice Questions (MCQs); and True/False assessments. Why? Because they do not know how to pass exams that they have not practiced for. Their incapability to apply knowledge acquired in a classroom to real life or non-standardised exams is a cause of concern for many parents and educators.

Students grow up lacking social interaction; interpersonal; teamwork and communicating skills because they have not been allowed to acquire or develop these skills. All their waking hours are spent on memorising and more memorising.

In Singapore, from the strict design of pedagogies and curriculum to the series of standardised examinations, students are moulded into productive units of labour for the future. The introduction of more testing and streaming for younger students is leading to an overheated pressure cooker further damaging their youth and future generation. The recent deaths of two junior college students have once again highlighted the primary ramification from a highly-competitive and rigid education system: tremendous stress and pressure.

Another cost worth considering is the dearth of creativity like research among Singaporean students. The other problem which almost never gets any attention is the complete lack of development of critical thinking skills among Singaporean students. They are unable to read texts critically, offer interpretations, construct good arguments, and communicate clearly.

As a Chinese father, I would not be happy at all in schooling my four year old daughter in Singapore or Shanghai. I wouldn’t want my child to go through the ‘pressure cooker’ educational system where she is taught just to pass exams and incapable of any further comprehension.

We should all take pride in our schools and teachers. Yes, we need to do more to raise standards and expectations in our schools. Yes, we need to encourage our students to take up sciences. Yes, we need to invest more in our children’s future. Yes, we need educators who are motivated and yes, we need a fairer system where children have access to good schools in their communities.

To all educators, teachers, head teachers and governors out there, do not allow Michael Gove any where near your school. Stop this dangerous political vandalism in our school and education system before we start counting the number of suicides amongst our children.

China comes bearing gifts for better understanding

China’s Vice Premier, Li KeQiang arrives in Britain for a four day visit, the last leg of his European tour following his earlier visits to Spain and Germany. It signed nearly £6 billion of business deals in Germany, £5 billion in Spain and reaffirmed his country will buy Spanish government bonds.

What will China invest or buy in Britain? So far, it has signed deals worth £2.6 billion, far less than those signed in Spain and Germany.

Cui Hongjian of the China Institute of International Studies told the People’s Daily newspaper:

“Britain needs China because it needs international investment and overseas markets to solve its economic problems – such as the low purchasing power as a result of its tightened monetary policy.”

While Liu Xiaoming, China’s Ambassador to the United Kingdom, wrote in The Daily Telegraph:

“China is doing what a Chinese proverb says about ‘sending charcoal in snowy weather’.”

China will no doubt sign business deals whilst the Vice Premier is in the UK and Cameron will announce such deals as a success of UK-China talks. Is there all there is to it – business deals?

Before 2008, China would not even consider prioritising solving the West’s financial or economic problems. It needs to prioritise its own economy. China is in the middle of a huge redeployment of its economy and needs to get employment and social balance right. This is what China’s leaders wake up thinking about – all day and night.

China shares her borders with fourteen countries, she needs to focus on her neighbours who will fundamentally affect China’s stability and security. China has a long history of peaceful development, her people both long for a happy and peaceful life and enjoy harmonious relations with her neighbours. World peace is an important condition for China to achieve moderate prosperity, and China’s development in turn is conducive to world peace.

China is experiencing some tensions with Japan, the Korean peninsula and the South China Sea, not least the Kashmir border. These are issues China needs the world to come together and not leave China isolated.

Britain needs to look at its China policies again, it is not only just trade or business deals. Those who make human rights the sole determining issue, muddy the waters. China’s reaction to the Nobel Prize was heavily criticised by the West without any basic understanding of different values, she is unlikely to move much closer to Western values.

China is building a society where her people can receive education, get paid through work, have access to medical services, old-age support, decent housing, enough food and clothing and lead a well-off life. This is paramount and any distractions to achieving those basic needs are ignored.

The West can try to understand them as they are and work with them. Finger pointing does not work, sharing experience is a much better approach, and usually much acceptable.

China seeks equal political partnership and mutual respect, economic partnership of mutual benefit and common development, cultural partnership of dialogue and mutual learning, and strategic partnership of close collaboration in international affairs.

China, as a major country, does not shirk its responsibilities. In recent years, it has arranged billions of dollars of debt relief for developing countries and it has contributed its share of peacekeepers. It has acceded to nearly 100 multilateral international conventions. It has made contributions to the United Nations Millennium Development Goals, the International Monetary Fund bail-out programme, the reconstruction of Afghanistan and disaster relief. China will remain a conscientious global player in fulfilling international responsibilities.

Businesses do want better relations with China to enable more access to the Chinese market, they will, nevertheless, find their own subtle ways to build businesses with China.

Every country wants a bigger share of the Chinese market, China will accommodate them. Countries which share China’s growth with political parity, respect and trust will be the beneficiaries. Britain needs to be one of those countries.

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英国从中国副总理来访得到什么：礼物，还是更好的沟通

作者：梁辛尼 出版人和英国华人工党主席 2011年1月

中国副总理李克强抵达英国进行为期四天的访问。英国是继李克强率团访问西班牙和德国之 后，作为此次出访欧洲的最后一站。此前中国在德国签署了将近60亿英镑的商业协议，在西班牙签下50亿英镑的大单，并且重申中国将会购买西班牙国债。那么 中国将给英国带来什么样的投资或者贸易机会呢？ 到目前为止，中英签署了价值３０亿英镑的协议，大大少于此前西班牙和德国与中国的贸易额。　。

《中国日报》引用中国国际问题研究所研究员崔洪建的话评价说，”英国需要中国因为她需 要国际投资和海外市场来解决自身的经济问题，比如由于英国实行紧缩的货币政策而导致的低购买力。” 中国驻英国大使刘晓明在《每日电讯报》上撰文指出，”像一句中国谚语说到的那样，中国正在做的事情就是’雪中送炭’。”

毫无疑问中国副总理访英期间会签署商业合作协议，而且卡梅伦也会宣布类似的合作协议以证明中英会谈的成功。但中国来访的意义仅在于此吗？

在2008年以前，中国甚至不会优先考虑解决西方的金融或者经济问题。 因为她需要优先考虑自身的经济状况。中国正处于重新调整经济的重大部署当中，需要平衡好就业和社会发展目标。这才是中国领导人殚精竭虑昼思夜想的问题。

中国和14个国家接壤。她需要专注于解决好从根本上对中国的稳定和安全产生影响的邻国 关系。中国有这长期和平发展的历史，她的人民也向往快乐和平的生活以及睦邻友好和谐周边的外交关系。 世界和平是中国取得稳定繁荣的一个重要条件，所以中国的发展从根本上对世界和平是有积极意义的。

目前在与日本、朝鲜半岛关系以及南海地区和克什米尔边界问题上中国正面临的紧张局势，需要国际社会和衷共济，而不是让中国独自面对。

英国需要重新审视自己对中国的外交政策，不应该仅仅专注于贸易和商业协议。 那些把人权作为唯一决定因素的人起到的作用只会是搅浑水。中国对诺贝尔奖的反应，曾遭到西方世界严厉批评。然而那些对不同价值观缺乏基本认识的批评者们，其实不可能接近真正的西方价值观。

中国正在致力于建设一个勤者有其学、劳者有其酬、病者有其医、老者有其助、居者有其屋，丰衣足食的小康社会。这是中国目前至关重要的发展目标，任何偏离这个基本需要的因素都要忽略不计。

要想理解上述目标和价值观，西方世界应该求同存异，努力与之共处。 指指戳戳是不管用的，交流和共享经验才是更好的途径，而且通常是更容易为对方所接受。

中国在国际事务当中，寻求平等和相互尊重的政治伙伴关系，合作共赢经济伙伴关系，交流互鉴的文化伙伴关系，以及紧密合作的战略伙伴关系。

而且作为一个大国，中国并没有逃避自己的责任。最近几年来，她为发展中国家安排了数十 亿美元的债务削减，积极参与维和行动。她加入近100多个多边国际公约。对联合国的千年宣言发展计划，国际货币基金组织的救助项目， 阿富汗的重建和消除危机都作出了积极贡献。在全球事务当中，中国承担着认真谨慎负责履行国际义务的角色。

尽管生意人总能曲径通幽，找到和中国做生意的门道。但是为了进一步拓宽进入中国市场的途径，商人们当然希望本国进一步改善与中国的关系。

任何一个国家都想在中国市场这块大蛋糕上分得更大的份额，对此中国是来者不拒的。但是只有那些和中国在政治上平等尊重互信的国家才会和中国共同成长，成为真正的受益人。英国需要做的，就是成为其中的一分子。

LCID Parliamentary Reception with Harriet Harman

Please come along and join LCID for an evening reception with the Labour Shadow International Development team

The evening will include a speech from Rt Hon Harriet Harman MP, Shadow Secretary of State for International Development, and will be a chance for you to meet and ask questions with the new Shadow team.

You'll also be able to meet our new Honorary Presidents - we're very excited to have them on board and will be revealing all very shortly!

And it will also be a opportunity to find out more about LCID's work over the last year and it's upcoming plans.

Please RSVP to eilidh@lcid.org.uk.