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Multimillion-pound landfill tax fraud investigation ends

HMRC Landfill tax fraud allegations raidHMRC
Early morning raids led to a number of arrests across the north-east of England and Yorkshire

An investigation into an alleged multimillion-pound landfill tax fraud has ended without charges being issued.

Fourteen people were arrested in raids across the north-east of England and Yorkshire in September 2015.

At the time, HM Revenue and Customs (HMRC) said it was investigating a "suspected systematic abuse of the landfill tax system".

Blaydon Labour MP Liz Twist has called for officials to reveal how much was spent on the investigation.

In 2015, HMRC estimated the alleged fraud at £78m, although another source has since told the BBC the figure could have been as high as £158m.

Operators of landfill sites are required to pay landfill tax on anything left on their site as disposed waste, with exemptions for certain materials in some circumstances.

Among the firms raided was Niramax, a waste management firm with bases in Hartlepool and Washington.

UK Parliament/Jessica Taylor Liz TwistUK Parliament/Jessica Taylor
Labour MP Liz Twist is asking why the investigation was dropped

Another search took place at Octagon Green Solutions, which at the time operated in Blaydon as one of Niramax's associated companies.

It is now run by a different firm under a new name, Recylogical.

Raids were also carried out in Leeds and Hull.

Ms Twist said: "I'm really angry and I've asked HMRC to explain to me what has happened and how much money has been spent in running this operation to reach this end where it's just fizzled out really.

"What's happened? Is there still unpaid tax and why has the investigation taken so long to quietly be dropped?"

In a statement, HMRC said: "We take all reports of suspected tax evasion extremely seriously and we thoroughly analyse and investigate them.

"Following a full criminal investigation, it has been decided that the case will not be brought before the criminal courts."

Niramax declined to comment when approached by the BBC. Recylogical has also been approached for comment.

Unrelated to the investigation, Neil Elliott, the former managing director of Niramax, was jailed for 15 years in March 2020 after being convicted of manslaughter following the death of a man in Hartlepool in 2019.

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