New penalties for duty fraud
New penalties for duty fraud
New penalties for illegally selling cigarettes, alcohol and fuel come into effect from 1 April. The new ‘wrongdoing penalties’ will apply where someone:
? Handles goods on which excise duty has neither been paid nor deferred
? Uses a product in a way that means more excise duty should have been paid
? Supplies a product at a lower rate of excise duty knowing that it will be used in a way that means a higher rate of duty should be paid.
If someone is caught, the new penalty will be a percentage of the potential lost revenue to the Exchequer. Penalties will range from 10 per cent of the possible lost revenue to 100 per cent. In addition, anyone running a business selling goods that have excise duty on them can be penalised if an employee or advisor commits a "wrongdoing". The penalty can be avoided if the business can show that it has taken reasonable care to avoid this by, for example, setting up systems and procedures to prevent the wrongdoing.
For a fact sheet on the new penalties please go to:
http://www.hmrc.gov.uk/about/new-penalties/wrongdoing-penalty.pdf