HMRC launched a specialist tobacco taskforce last summer to tackle some of the UK’s most notorious hotspots for the sale and supply of illicit tobacco and alcohol as part of its overall remit to tackle tax fraud.

Earlier this month, around 40 HMRC officers with support from North Wales Police, UK Border Agency, and Trading Standards officers carried out checks on shops, private addresses and self-storage sites in North Wales suspected of being used to sell, store, supply or distribute illicit alcohol and tobacco.

The visits resulted in the seizure of more than 1.6 million cigarettes, 700kg kilos of hand-rolling tobacco and 3,000 litres of alcohol. Altogether almost £800k of duty and VAT could have been evaded. Owners of premises where illicit goods are found face seizure of goods, fines, and a possible prosecution.

Colin Spinks, Assistant Director, Criminal Investigation, HMRC, said:

‘The sale of illegal tobacco and alcohol will not be tolerated by us or our partner agencies. Disrupting criminal trade is at the heart of our strategy to clampdown on the illicit tobacco market, which costs the UK around £2 billion a year, and the sale of illicit alcohol which costs the UK around £1 billion per year. This is theft from the taxpayer and undermines legitimate traders.’

The targeting by the tobacco taskforce of specific businesses is not an amnesty and unlike some initiatives which sought to tempt taxpayers to come forward under favourable terms there is no formal disclosure facility on offer. HMRC officers have a full range of civil and criminal sanctions at their disposal.