Taxman slammed by Parliamentary committee over booze smuggling
By: JimOldfield
September 2nd, 2012
HM Revenue and Customs has averaged just SIX successful prosecutions for booze smuggling per year, over a four-year period, a committee of MPs has claimed.
Parliament’s Public Accounts Committee said that there were no more than half a dozen court wins in the four years to 2009/10.
The revelation adds to the controversy over the possible introduction of Beer Stamps – the taxman’s proposed solution to illicit alcohol-peddling, that the pub and brewing industry says would be “disastrous” to the industry.
And the committee said HMRC should be prosecuting more people. But the taxman – who says smuggled beer and spirits is costing up to £1.2bn a year in lost revenue – says it has implemented a new anti-fraud strategy which is leading to more prosecutions.
The committee however was critical of HMRC’s lack of progress on the issue.
The committee’s report says three times as much UK beer is exported to Europe than is actually sold there.
Some 450 million litres are exported to the continent by fraudsters who fail to pay any tax on it. Of that, some 180 million litres are then re-imported – once more with no tax paid.
But the committee’s report says: “The department does not make best use of intelligence and technology to detect and prevent alcohol duty evasion.
“The department needs to work more closely with the industry to improve its understanding of legitimate export markets, and improve how it works with the UK Border Force to gather intelligence on illegal alcohol imports.”
HMRC wants to have every single bottle or can of ale individually marked with a “fiscal mark” or Beer Stamp, to prove that tax has been paid .
The idea has been slammed by brewers across Europe led by the British Beer and Pub Association (BBPA) which says the idea would be “prohibitively expensive” and would spell disaster for the brewing industry across the UK and continental Europe.
Echoing the Public Accounts Committee, the BBPA wants to work closely with HMRC to set up a beer fraud task force to tackle the problem.
Hand-Pumped link:
www.brewersofeurope.org
www.fwd.co.uk
www.beerandpub.com
