The IIB director general has urged the government to take a...
The IIB director general Andrew Paddick has urged the government to take a “robust stand and do everything possible in its power", to secure an amendment to the Sixth Directive, which will charge VAT to insurance services.
In his response to the HM Revenue & Customs consultation on proposed changes to UK law to reflect the European Court of Justice judgment in the Arthur Andersen case, Paddick said the government must find a solution "which more accurately, realistically and equitably reflects how global insurance markets operate in this new millennium”.
Paddick said the UK was already witnessing an accelerating loss of operations/jobs in its financial services sector to overseas locations and that the introduction of further taxation would only act as a stimulus.
He went on to argue that if a really sensible cost:benefit analysis were to be conducted, it would almost certainly reveal that the bottom line loss to UK Ltd, would far exceed the anticipated £175m to be raised by amending our VAT laws – which, he maintained, would be much less in reality.