In some countries, the receipt you get for buying a £1 bottle of coke could be worth £1000s or even £millions.
How do you get businesses to issue proper receipts to buyers, so they pay the VAT and not evade it? It’s a difficult one for tax authorities, especially for cash purchases.
One answer that Taiwan came up with in 1951 is that receipts are entered into a lottery to win cash prizes. That means the buyer wants the receipt and essentially shoppers become unpaid tax auditors.
Earlier this year, someone in Taiwan won £230k from a receipt for 90p of tea.
Variations of the above been tried in Italy, Portugal, Slovakia, Malta, Brazil and Serbia.
At the moment £12.1bn of VAT goes unpaid each year. When Brazil introduced the lottery, it saw a 21% increase in reported sales and 9% increase in tax. Could this be a simple way for Healey claw back some cash into the coffers?
