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Debate over Channel Islands VAT loophole

A growing number of UK-based internet companies say they are being forced to close because of a tax loophole that allows goods shipped from the Channel Islands to be sold without VAT.

The Treasury is reviewing the situation but campaigners are calling for the practice to be stopped before they lose their businesses.

BBC News heard from businessmen in Devon and Guernsey to get both sides of the argument.

  • 04 Feb 2011
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