{"id":3605,"date":"2024-11-05T05:31:48","date_gmt":"2024-11-05T10:31:48","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=3605"},"modified":"2024-11-05T05:31:48","modified_gmt":"2024-11-05T10:31:48","slug":"hmrc-and-defra-target-waste-offenders","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=3605","title":{"rendered":"HMRC and Defra target waste offenders"},"content":{"rendered":"


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Waste crime in the UK is costing taxpayers millions each year, largely due to landfill tax evasion and illegal waste operations \/ Credit: ABB Photo via Shutterstock<\/figcaption><\/figure>\n<\/p><\/div>\n

The UK government introduced landfill tax in 1996, aiming to discourage the disposal of waste in landfills and promote recycling. According to HM Revenue and Customs (HMRC), landfill tax is \u201cnot primarily intended as a revenue-generating tool\u201d but instead to drive behavioural changes in waste management.<\/p>\n

To achieve this, HMRC employs a two-tier tax system: a lower rate for non-decomposable waste and a higher rate for waste that releases greenhouse gases upon decomposition.<\/p>\n

Since its introduction, landfill tax has been successful in reducing waste sent to landfill, resulting in a 90% decrease by local authorities alone.<\/p>\n

However, with the tax increase over recent years, incentives for tax evasion have grown. In 2019-2020, HMRC estimated a \u00a3200 million shortfall due to landfill tax evasion, describing it as the second-largest tax gap across all taxes.<\/p>\n

This shortfall arises from tactics like mislabelling waste to qualify for a lower tax rate and illegal dumping. \u201cWe are actively working to reduce this gap,\u201d HMRC stated, adding that it collaborates closely with landfill operators to enforce compliance.<\/p>\n

Yet, prosecuting landfill tax evasion remains challenging. Despite some success in civil cases, only one criminal prosecution is currently underway, and HMRC is \u201cstill learning\u201d how to best investigate this kind of crime.<\/p>\n

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