Fuel Fraud
Her Majesty’s Revenue and Customs estimate an annual loss of revenue in Northern Ireland of £245 million, representing about 30% of the market, a decrease from 40% of the market four years ago. While cross border fuel shopping accounts for a significant proportion of this revenue loss, there is a large element of loss through organised fraud. This is perpetuated by both the misuse of rebated oils such as red diesel, kerosene and tied oils and the smuggling of fuel across the land boundary with theRepublicofIreland .
This fraud undermines legitimate business, damages the environment, vehicles and the wider public as illicit fuel is transported in unsafe containers across the country. HM Revenue and Customs have over 160 officers dedicated to oils activity.
As a fiscal authority with a law enforcement arm HM Revenue and Customs have a number of tools available to them that are not necessarily criminal justice tools. For example they can seize fuel and vehicles, impose tax assessments, control the supply chains of products like red diesel and kerosene making it more difficult for criminals to source rebated fuels. This activity all contributes to the fight against oil fraudsters.
In 2004/05, the period for which latest figures are available, HMRC:
- Disrupted 18 fuel laundering plants
- Seized 1.78 million litres of illicit oils
- Seized 812 vehicles.
Figures for 2005/06 will be published in the HMRC Annual Report in December 2006.
