Customs officers are conducting surprise swoops on wholesaler depots as part of a new offensive in HMRC's war on alcohol duty fraud, The Grocer has learned.
The latest crackdown was part of a 'revised alcohol strategy' recently given the go-ahead by the new coalition government, revealed Ruth Ryan, a senior policy advisor at HMRC in an exclusive interview.
Customs had been carrying out the unannounced inspections to check that every beverage in wholesaler depots was accounted for with the correct paperwork since April, she said.
Wholesalers would be fined for the duty on any stock that had no invoice, said HMRC, adding that it would use the invoices to track any alcohol suspected of being duty-avoided through the supply chain.
Alcohol duty fraud costs the Treasury at least £1bn a year and industry insiders claim that the problem is getting worse.
The new strategy was not just targeting wholesalers but "the entire supply chain from top to bottom" in a bid to get the problem under control, said Ryan.
"We are dealing with organised criminality and an increasing duty fraud on beer and wine," she said. "It's about dismantling organised criminal gangs and taking them on all fronts."
There was anecdotal evidence that the problem of duty drawback where UK-produced booze destined for export is smuggled back into the UK is getting worse, she admitted, but said the new strategy would help.
Bonded warehouse keepers, which already receive surprise visits from HMRC, will also come under greater scrutiny as part of the new regime.
Previously, their stock was checked to make sure it had accompanying paperwork, but now their entire business accounts are to be checked for a range of different tax evasions, including VAT and corporation tax.
HMRC can ultimately take away the warehouse keepers right to trade 'under bond' if they decide that the businesses are not legitimate.
The latest crackdown was part of a 'revised alcohol strategy' recently given the go-ahead by the new coalition government, revealed Ruth Ryan, a senior policy advisor at HMRC in an exclusive interview.
Customs had been carrying out the unannounced inspections to check that every beverage in wholesaler depots was accounted for with the correct paperwork since April, she said.
Wholesalers would be fined for the duty on any stock that had no invoice, said HMRC, adding that it would use the invoices to track any alcohol suspected of being duty-avoided through the supply chain.
Alcohol duty fraud costs the Treasury at least £1bn a year and industry insiders claim that the problem is getting worse.
The new strategy was not just targeting wholesalers but "the entire supply chain from top to bottom" in a bid to get the problem under control, said Ryan.
"We are dealing with organised criminality and an increasing duty fraud on beer and wine," she said. "It's about dismantling organised criminal gangs and taking them on all fronts."
There was anecdotal evidence that the problem of duty drawback where UK-produced booze destined for export is smuggled back into the UK is getting worse, she admitted, but said the new strategy would help.
Bonded warehouse keepers, which already receive surprise visits from HMRC, will also come under greater scrutiny as part of the new regime.
Previously, their stock was checked to make sure it had accompanying paperwork, but now their entire business accounts are to be checked for a range of different tax evasions, including VAT and corporation tax.
HMRC can ultimately take away the warehouse keepers right to trade 'under bond' if they decide that the businesses are not legitimate.
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