Freeserve has stepped up its campaign against rival AOL UK and the tax loophole that exempts the US-based ISP from paying VAT.

In the 22 days since Merrill Lynch published a report detailing the "tax advantage" Le Freeswerve reckons AOL UK has earned a whopping £1,808,219 in unpaid VAT.

Britain's biggest French ISP reckons AOL UK should pay around £30 million a year in VAT, but is exempt under UK tax rules because its servers are based outside the European Union.

If that money (£30 million) were to be paid into the Treasury Le Freeswerve says it could pay for:

• 676 bobbies on the beat, or
  
• 1,371 newly qualified teachers, or
  
• 522 firemen, or
  
• Winter shelter for 70,755 homeless people, or
  
• 63,158 PC's for schools
  

Earlier this month Le Freeswerve said if AOL UK paid VAT it could fund heart and lung transplants.

It has also threatened to move its servers to Algeria - so it too can benefit from the loophole - unless the tax rules are changed. ®

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