From 1 April 2018, HMRC is proposing to make the illegal disposal of waste taxable, with the power to prosecute illegal waste operators and impose large fines and prison sentences of up to seven years, the government has announced.
The draft legislation was published yesterday for technical consultation ahead of introduction in the Finance Bill later this year.
The announcement builds on the action already being taken by the Environment Agency to shut down these sites, by removing the financial incentive to set them up in the first place.
The HM Treasury said this will ensure that honest businesses in the industry which pay the landfill tax owed are not disadvantaged by unfair competition.
Landfill tax
A previous consultation issued by HM Revenue & Customs on whether to bring illegal waste sites within the scope of landfill tax in England and Northern Ireland was launched in March 2017 (see letsrecycle.com story) and concluded yesterday (13 September).
The consultation set out the reasons for targeting illegal waste sites and considered how to define an illegal waste site, the persons liable for the tax and how to quantify the amount of tax due.
‘Impact’
Andrew Jones, Exchequer secretary to the Treasury said: “Illegal waste sites are a blight on communities and undermine legitimate landfill operators. We have listened carefully to concerns raised by businesses and local communities and we are taking action to tackle this crime”.
HMRC’s director general for customer strategy & tax design, Jim Harra, said: “These rules will go a long way to clamping down on the use of illegal waste sites, strengthening existing work in this area led by the Environment Agency.
“These rules will go a long way to clamping down on the use of illegal waste sites, strengthening existing work in this area led by the Environment Agency.”
Jim Harra
HMRC
“The impact of these illegal sites on landowners and the environment can be significant. By making the illegal disposal of waste taxable, we will deter the spread of this damaging activity by making it less profitable and reinforce the principle of ‘the polluter pays’.”
Consultation
Businesses and individuals are being encouraged to give their views to ensure that the legislation works as intended. The consultation period will be open for six weeks, closing on 25 October 2017.
The government estimates that there are currently around 600 illegal sites operating in England, Wales and Northern Ireland.
The Environment Agency already has the power to shut down illegal waste sites, due to the damage they cause to the environment. In 2016, the Agency prosecuted 110 businesses and individuals for offences related to illegal waste sites.
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