TMF EU VAT Tracker Anticipates Further Tax Rises

LONDON, September 20, 2010 - The latest annual TMF EU VAT Tracker is now forecasting new increases in
European consumption tax as member states struggle to control spiralling
deficits. The average GNP-weighted VAT rate is set to break through the 20%
level, compared to less than 19% in 2009.

Following large increases in 2010 in Spain, Portugal, Greece, Romania,
the Czech Republic and Finland, the VAT Tracker is set to continue its ascent
in 2011 with announced rises in the UK, Poland and Slovakia.

TMF EU VAT Traker - September 2010

                                    EU GNP-weighted
                                   Average VAT rate
                 2009                  18.96%
                 2010                  19.67%
                 2011 Forecast         20.07%

Data sources: IMF WEO and Europa

Crippling EU deficits force emergency VAT rises

The annual TMF EU VAT Tracker charts changes in standard VAT rates
throughout the 27 European Union countries. Since the start of the current
financial crisis in 2007, it has highlighted the sharp rise in VAT rates
across the region as countries have sought to reassure panicked financial
markets of their intent to restore balanced budgets.

Whilst politically unpopular, VAT increases are also seen as the perfect
solution to funding cuts in job-destroying business taxes (i.e. payroll and
corporation tax). For example, Germany's 2007 3% VAT increase was matched by
cuts in social security charges, and the UK's 2.5% increase in 2011 will help
fund a reduction in corporation tax from 28% to 24% over the next four years.

For more details, see www.tmf-vat.com/vat/eu-vat-rates.html, for
analysis of European VAT rates.

Richard Asquith, MD of TMF VAT Services commented:

"Governments across the EU have always wanted to raise VAT as they look
to switch the tax burden from employers to consumers and fight globalisation
pressures. Low tax economies of the East have been luring the large employers
out of Europe for years. The spiralling deficits and spooked financial
markets seem to have given cover for this strategy.

There seems little doubt that there will be more rises announced as
financial markets scrutinise budget consolidation plans. After the UK and
Spanish hikes, many of the other 'Western' states will be investigating their
options.

About the TMF VAT Services

TMF VAT Services www.tmf-vat.com/ provides international VAT
compliance services. It is part of the TMF Group, which offers accounting
services through 87 offices in 67 countries.

Contact:

    Richard Asquith
    Managing Director
    TMF VAT Services
    UK
    Tel: +44(0)870-067-8881
    richard.asquith@tmf-group.com

Contact: Richard Asquith, Managing Director, TMF VAT Services, UK, Tel: +44(0)870-067-8881, richard.asquith at tmf-group.com