An international
search for a new fuel marker to help in the fight against diesel
fraud has been announced by revenue authorities in the United
Kingdom (UK) and the Republic of Ireland (ROI).
Millions of pounds in revenue are lost each year in the UK and
the ROI through fuel laundering - the removal of the chemical
markers from low duty diesel - to sell it on as road fuel.
Working in partnership, HM Revenue & Customs (HMRC)
in the UK and the Revenue Commissioners in ROI are seeking
submissions aimed at finding a replacement for the current fiscal
fuel markers, which are added to fuels with lower duty rates. In
response to the continuing threat to revenues a Memorandum of
Understanding between the revenue authorities in both countries
was signed in May 2012. This set a framework for the project to
identify an improved marker for use by both countries.
Andy Wiggins Oils Policy team leader, HMRC said:
“Although the UK’s current fuel marker is actually one of the
better quality markers in use, we are not complacent and
appreciate the need to keep one step ahead of fuel launderers.
“Consequently the search for an even more robust marker
capable of foiling 21st Century fuel launderers is essential to
ensure that opportunities for fraudsters attempting to exploit
fuel supplies are reduced and illicit fuel can be detected.”
Revenue Commissioner Liam Irwin said:
“Fuel laundering and trading in illicit fuel represents a
significant threat to the Exchequer and hurts legitimate
businesses. We are determined to take every action necessary to
stamp out this form of criminality. It's a problem common
to both Ireland and the UK and the search for a more resistant
marker will be an important element in combating this form of evasion.”
The UK and the ROI revenue authorities published a joint
‘Invitation to Make Submissions’ (IMS) on 28th June which set out
details of how this process will run. Details of the IMS can be
found here.
Notes for Editors
1. A reduced or rebated rate of mineral oil tax applies to
oil supplied for use in commercial and domestic heating systems as
well as in ships, fishing boats, trains and certain vehicles used
for the most part by the agricultural sector and construction
industry. Currently such mineral oil is marked by the addition of
specified markers, in both the UK and the Republic of Ireland, to
indicate that the fuels are subject to the lower tax rate and to
detect the fraudulent use of these fuels as a propellant in motor vehicles.
2. A Memorandum of Understanding between the UK and Ireland
revenue authorities was agreed and signed in late May 2012. This
set a framework for the project to identify an improved marker via
the IMS.
3. The ‘Invitation to Make Submissions’ is published in the
Official Journal of the European Union (OJEU). It is the online
journal published in all members’ state languages with around
2,500 notices published each week, including similar invitations
to make submissions. It is widely read by businesses, universities
and research bodies.
4. Follow HMRC on Twitter @HMRCgovuk
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