§ Mr. BakerTo ask the Secretary of State for Culture, Media and Sport who is responsible for making the VAT payment on the donation given by the Hinduja brothers to the Faith Zone of the Millennium Dome. [153733]
§ Janet Anderson [holding answer 14 March 2001]The New Millennium Experience Company (NMEC), having recently reviewed its papers on the Hinduja Foundation's contribution of £1 million to the Faith zone, concluded that VAT is chargeable in respect of that contribution. NMEC reached this conclusion on the basis that an allocation of free tickets to the Hinduja Foundation represented a benefit. The Company made a voluntary disclosure to HM Customs and Excise. NMEC has now brought this payment into account for VAT purposes and will make the appropriate payment when all related aspects are agreed with HM Customs and Excise. NMEC is satisfied that in respect of the earlier treatment of the Hinduja Foundation's contribution, and the latter allocation of tickets, there was no deliberate attempt by NMEC staff to avoid VAT. There was an innocent error which, having been identified, is now being corrected.