Source · Select Committees · Public Accounts Committee
Recommendation 17
17
Deferred
We heard of recent actions and successes in combatting landfill tax evasion.
Recommendation
We heard of recent actions and successes in combatting landfill tax evasion. HMRC has increased the number of its officials that are working on landfill tax compliance and it assured us that it works with the largest businesses to secure around 80% of total landfill tax revenue. It claimed that it has saved around £1.1 billion in landfill tax over the last few years that would potentially have been lost through misinterpretation of the legislation.60 It is engaging with HM Treasury’s current review of landfill tax. The Environment Agency (the Agency) told us it is also tackling landfill tax evasion – around two years ago it started investigating misdescription of waste and has been working more closer with HMRC. It described how it has recently tackled waste operators that fraudulently apply for a water 52 Qq 22, 58 53 Q 58; C&AG’s Report, para 1.5 54 Q 77; C&AG’s Report, Figure 3 55 Qq 22, 81; C&AG’s Report, para 13 56 Q 19; GWC0003 (Environmental Services Association) 57 Qq 19–22 58 Qq 52–54 59 Qq 55, 57, 65, 75 60 Q 58 Government actions to combat waste crime 15 discount—a reduction in the amount of landfill tax paid to offset the water content of waste—resulting in a significant drop in applications and recouping some of the estimated £200 million lost through this type of fraud.61 Deterring waste crime
Government Response Summary
HMRC will provide a response outlining how it has improved its approach to landfill tax prosecutions by the end of December 2022.
Government Response
Deferred
HM Government
Deferred
3b: PAC recommendation: HMRC should report by the end of the year on how it has improved its approach to landfill tax prosecutions. 3.6 The government agrees with the Committee’s recommendation Target implementation date: December 2022 3.7 HMRC is working with partners across government to tackle waste crime and will use this activity together with learning from previous operations to improve its approach to investigations. A response outlining this will be provided within the specified time period.