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| MPs demand action on lost alcohol taxation | MPs demand action on lost alcohol taxation |
| (about 9 hours later) | |
| The UK's tax authorities should prosecute more people for alcohol smuggling, a committee of MPs says. | The UK's tax authorities should prosecute more people for alcohol smuggling, a committee of MPs says. |
| The Public Accounts Committee says there were no more than six successful prosecutions each year, in the four years to 2009-10. | The Public Accounts Committee says there were no more than six successful prosecutions each year, in the four years to 2009-10. |
| HM Revenue & Customs (HMRC) estimates that as much as £1.2bn in tax is uncollected each year on smuggled beer and spirits. | HM Revenue & Customs (HMRC) estimates that as much as £1.2bn in tax is uncollected each year on smuggled beer and spirits. |
| But HMRC said a new anti-fraud strategy was leading to more prosecutions. | But HMRC said a new anti-fraud strategy was leading to more prosecutions. |
| "HMRC's performance in tackling alcohol fraud is measured by the combined impact of both civil and criminal proceedings on alcohol duty evasion - which increased significantly when the strategy was introduced," said the HMRC's chief executive, Lin Homer. | "HMRC's performance in tackling alcohol fraud is measured by the combined impact of both civil and criminal proceedings on alcohol duty evasion - which increased significantly when the strategy was introduced," said the HMRC's chief executive, Lin Homer. |
| "Prosecutions are a strong deterrent and HMRC continues to investigate cases criminally where this will maximise impact on the fraud." | "Prosecutions are a strong deterrent and HMRC continues to investigate cases criminally where this will maximise impact on the fraud." |
| Better strategy needed | Better strategy needed |
| The MPs on the committee say HMRC has no idea how much tax is lost on smuggled wine. | The MPs on the committee say HMRC has no idea how much tax is lost on smuggled wine. |
| Without better information, they say, HMRC cannot be sure its strategies to collect more tax are being effective. | Without better information, they say, HMRC cannot be sure its strategies to collect more tax are being effective. |
| Richard Bacon MP, a member of the Public Accounts committee, said: "HMRC's drive to tackle alcohol duty evasion is being seriously hampered by a lack of information. | Richard Bacon MP, a member of the Public Accounts committee, said: "HMRC's drive to tackle alcohol duty evasion is being seriously hampered by a lack of information. |
| "The department does not, however, have enough reliable information on the returns from tackling different types of alcohol duty evasion. | "The department does not, however, have enough reliable information on the returns from tackling different types of alcohol duty evasion. |
| "The absence of information on the scale and nature of wine duty fraud undermines the basis on which the department directs its resources to tackling the problem," Mr Bacon added. | "The absence of information on the scale and nature of wine duty fraud undermines the basis on which the department directs its resources to tackling the problem," Mr Bacon added. |
| In 2010, HMRC put in place a new strategy to tackle alcohol smuggling and the growing amount of uncollected tax. | In 2010, HMRC put in place a new strategy to tackle alcohol smuggling and the growing amount of uncollected tax. |
| The HMRC's estimate of the alcohol tax gap was published most recently in September 2011. | The HMRC's estimate of the alcohol tax gap was published most recently in September 2011. |
| The central guess for lost tax was £100m for spirits and £600m for beer, with a total of £1.2bn as a possible upper estimate, but nothing for wine. | The central guess for lost tax was £100m for spirits and £600m for beer, with a total of £1.2bn as a possible upper estimate, but nothing for wine. |
| Although the tax authorities have put more effort into tackling the problem of alcohol smuggling, the MPs say HMRC has still not grasped it adequately. | |
| "The department does not make best use of intelligence and technology to detect and prevent alcohol duty evasion," the report says. | "The department does not make best use of intelligence and technology to detect and prevent alcohol duty evasion," the report says. |
| "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," the report added. | "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," the report added. |