12/06/09: M&R Tax Advisers Secure Withdrawal of Excise Duty Assessment for Client
M&R Tax Advisers are acting on behalf of an alcohol wholesale business which is authorised by HMRC under the WOWGR regulations to deal in excise duty suspended goods, transferred (for example) between different UK bonded warehouses or for despatch duty suspended to another EU Member State.
The trade in duty suspended goods is an area where HMRC allege that fraud is rife. In one version of what is known as excise diversion fraud, according to HMRC, consignments of excise goods (such as alcohol and tobacco) intended for despatch from the UK to other EU Member States never reach their intended destination and are instead illegally diverted for sale in the home market, duty free, with the excise duty due to HMRC being defrauded.
In March 2009, HMRC raised an assessment for excise duty (effectively a demand for tax) of nearly £40,000 against our client in relation to two consignments of alcohol owned by our client, on the basis that the two consignments had been fraudulently diverted onto the UK market.
On behalf of our client, we requested that HMRC conduct an independent Departmental review of the decision to raise the excise duty assessment, providing detailed grounds in support of our client’s case. HMRC have been persuaded by our arguments and the excise duty assessment has now been withdrawn by letter dated 5th June 2009 on the basis that there is insufficient evidence that excise diversion fraud had taken place. In consequence, our client is no longer required to pay the assessment.
Please contact us if you consider that we can be of assistance to you in any issue arising with HMRC.
