MAKING POLLUTORS PAY! F
rom April 2018, operators of illegal waste sites will have to pay Landfi ll Tax or risk large fi nes
or a prison sentence in a move which will benefi t legitimate operators.
Illegal waste sites are oſt en in the headlines for all the wrong reasons. Such sites can cause extensive damage to the environment, a risk to human health and make it diffi cult for legitimate businesses to compete in the sector. However, in September 2017 the Government announced plans for new powers to tackle these sites in a move that the waste industry has welcomed.
Under the plans, operators handling waste illegally will have to pay Landfi ll Tax, at the higher rate, from April 2018. At present, only registered sites are eligible to pay the tax. T is makes the activity attractive to rogue operators who exploit the disparity of tax treatment and undercut legitimate operators. It also means that when illegal operators are prosecuted, the fi nes they face are sometimes not as high as the amount of Landfi ll Tax they have avoided.
Once passed, the legislation will make the person illegally disposing waste and anyone who knowingly causes or knowingly permits the disposal liable for the tax. It will also give Her Majesty’s Revenue & Customs (“HMRC”) the powers, where necessary, to prosecute illegal operators, who could face large fi nes and risk a sentence of up to seven years in prison. T e amendments will form part of the Finance Bill, which is due to be introduced later this year.
T e measure is intended to protect the environment by removing the fi nancial incentive to set up illegal waste sites in the fi rst place. It also aims to ensure that honest businesses who pay the tax they owe are not disadvantaged by unfair competition.
Andrew Jones, exchequer to the Treasury, said: “Illegal waste sites are a blight on communities and undermine legitimate landfi ll operators. We have listened carefully to concerns raised by businesses and local communities and
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we are taking action to tackle this crime.” Jim Harra, HMRC’s Director General for Customer Strategy & Tax Design, added: “T ese 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. T e impact of these illegal sites on landowners and the environment can be signifi cant. By making the illegal disposal of waste taxable, we will deter the spread of this damaging activity by making it less profi table and reinforce the principle of ‘the polluter pays’.”
T e changes apply to waste sites in England and Northern Ireland, as Landfi ll Tax was devolved to Scotland in April 2015 and will be devolved to Wales from April 2018. Both the Scottish and Welsh governments have similar provisions
in their respective legislation for a charge on material deposited at illegal sites.
CONSULTATION
T e draſt legislation follows an eight-week consultation, launched in May 2017, in which the Government received widespread support for the proposal from waste management companies and trade bodies including UROC.
T e respondents did, however, caution that any changes to the scope of Landfi ll Tax should not penalise innocent landowners, or those legitimately operating a business without a permit.
Responding to this, the government said in its briefi ng notes: “Safeguards will be put in place to ensure that landowners and people in the waste supply chain who, in spite of carrying out all reasonable due diligence, were unknowingly involved in the illegal dumping, won’t be assessed for any tax or penalties.”
It adds: “New exemptions will be introduced so that Landfi ll Tax is not charged at permitted sites on material currently outside the scope of the tax.”
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