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    Posted by Editor on 23rd December 2010 at 11:10 PM How to spot tobacco fraud
Issued by HM Revenue & Customs What to look out for: * tobacco (cigarettes and hand rolling tobacco) sold in unusual paces e.g. car boot sales * unauthorised sellers offering cheap tobacco in pubs, clubs and workplaces * legitimate retailers selling tobacco products at remarkably cheap prices * tobacco products without health warnings or with warnings not in English * tobacco products without the duty paid pack mark * unusual brands * unusual, out-of-hours deliveries * transfer of goods between vehicles * heavily laden vans * regular hiring of vans for foreign trips * UK brands of tobacco with tax labels not in English What should you do? Note down, where possible: * description of people and vehicles eg registration numbers * date * time * place * names * details of the products, including selling prices and brands. * Call the Customs hotline 0800 59 5000 now For your safety * DO NOT become involved - these people can be dangerous. * DO NOT buy any suspect goods, even as proof. * DO NOT think any piece of information is too trivial - it could be vital. Tobacco fraud With an estimated £2 billion in revenue being drained from the public purse each year by tobacco smugglers alone, the problem of excise fraud is a real one and one which both the Government and HM Revenue & Customs are determined to crack. Tobacco fraudsters are not “enterprising rogues”. They are criminals cashing in at the cost of honest taxpayers and businesses. They have also become increasingly sophisticated over the past decade: * They often operate in large gangs * A large proportion already have criminal records * Many have a history of violence and benefit fraud. Some of these criminals have even resorted to guns and violence to protect their lucrative but illegal trade. Selling the goods on Once the tobacco goods are smuggled into the UK, they are sold on to others at prices below the UK market rate, but still representing a hefty profit margin for the criminals. Sales operations for the illegal goods vary from the pub hawker selling from plastic bags, to more elaborate house or warehouse-based set-ups. Markets, car boot sales, factory floors and pop festivals are popular venues for this type of criminal activity, especially for hand-rolling tobacco and cigarettes. But unscrupulous pubs and shops have also been prosecuted for selling illegal tobacco on their premises. The Government is determined to crack down on those profiting at the expense of the public purse. It is the job of HMRC to translate these tough policies into front-line action by: * Detecting and apprehending those involved in tobacco fraud and the fraud itself * Investigate major criminals to gather information to allow them to be brought before the courts * Build up detailed intelligence on the illicit market and the fraudsters who feed it Working with others The size of the illicit trade means that no one organisation can tackle it alone. Of all our partners, the public is one of the most vital in our fight against smugglers and fraudsters. The 24-hour Customs hotline is a free telephone service, which the public can use to pass on any information about possible illegally imported goods or tax evasion and fraud. Call the HMRC’s hotline on 0800 59 5000 or email customs.hotlinel@hmrc.gsi.gov.uk Tougher penalties Criminals who are caught and successfully prosecuted can expect severe penalties, including jail sentences and heavy fines. Jail sentences can be given for revenue evasion of even a few thousand pounds, with the more serious criminals liable to a maximum term of seven years in prison. In fact, HMRC now urges the courts to use all sanctions available against offenders, including driving disqualifications, seizure of their vehicle, compensation orders and confiscation of their assets. Offenders belonging to the licensed trade - pubs, off-licences, clubs and so on - are all subject to prosecution and may even have their licences revoked. Unscrupulous hauliers also risk the removal of their operating licences and vehicle rental companies who persistently hire vehicles to smugglers face steep payments to gain their vehicles back. Due to problems with spam only SalfordOnline members can now leave comments. Becoming a member of SalfordOnline only takes a minute, just hit the red Join Us button at the top right hand side of the page to create your Personal account. Got a news story? Need help with publicity for an event in Salford? Send it to newsdesk@salfordonline.com or call the SalfordOnline newsdesk on 0161 789 5377. |
