tygerland.net

I’m ideologically Pro-EU, although I harbour no love for the current construct: it’s too bureaucratic, institutionally corrupt, Franco-centric, and economically unviable in its present form. What we need is fewer laws, a reduction in external tariffs, a full overhaul of the institutional accounts, and far more democratic accountability.

What will not help supporters of the EU, is news today of a €50bn Tax Fraud that is operating within the union.

From The Guardian:

With Britain set to lose up to £10bn in 2006 - equivalent to 3p on the basic rate of tax - European officials are warning that the problem is escalating rapidly across the EU, and other countries are likely to be experiencing losses of similar proportions. If the estimates are correct, the EU’s total loss each year would be around €50bn (£35bn) - the same as total common agricultural policy spending, and five times more than expenditure on employment and social affairs.

“This is now the number-one tax fraud. We are losing billions of euros,” said the EU tax commissioner, Laszlo Kovacs.

So-called carousel fraud involves compact, high-value goods such as computer chips and mobile phones being shipped into an EU country free of VAT. The tax is added when the goods are sold but is not handed over to the respective government. The loss is compounded when the goods are re-exported by another company in a chain of trades, known as a carousel, and the VAT is reclaimed - even though it had not been paid in the first place.