Question to the HM Treasury:
To ask Her Majesty's Government what is the estimated loss of revenue to HM Treasury as a result of the sale and distribution, within the UK, of laundered fuel, in each of the last three years for which figures are available.
HM Revenue and Customs (HMRC) estimates the difference between expected revenues and the tax that is actually paid in the annual publication, Measuring Tax Gaps. These estimates cannot be disaggregated by type of fraud, for example laundering.
HMRC has estimated the total oils (fuel duty) tax gap (including VAT) as follows:
The estimate for 2015-16 was calculated using a different methodology and therefore cannot be compared to the estimates for subsequent years. The oils tax gap for 2015-16 was estimated to be less than £100 million.
The table below details the number of laundering plants detected by HMRC in NI & GB in each of the last three financial years.
LAUNDERING PLANT DETECTIONS | ||
YEAR | NI | GB |
2016-17 | 5 | 6 |
2017-18 | 10 | 2 |
2018-19 | 7 | 3 |
The routine sharing of information to identify trends and emerging threats developed over many years through the Cross Border Fuel Fraud Group has continued and further built upon by the Cross Border Joint Agency Task Force introduced as part of the Stormont House (Fresh Start) Agreement. HMRC and the Revenue Commissioners together with other partner agencies are represented at both the regular Strategic and Operational meetings and this continued collaboration has been key to successfully identifying and interdicting fuel related fraud in both jurisdictions.
The table below details the number of convictions secured for oils related criminality in the UK in each of last three financial years.
Financial Year | Number of UK Convictions |
16/17 | 25 |
17/18 | 6 |
18/19 | 7 |