The responsibility for managing breaches of the Landfill Tax Regulations 1996 (Regulations) is split between ENTRUST and our Commissioners, HM Revenue & Customs (HMRC).
Breaches may relate to a late submission of a reporting form. For example, reporting a Contribution from a Landfill Operator (LO) or a Transfer between Environmental Bodies (EBs) or other incidences of non-compliance, such as, spending LCF monies on non-approved objects. Failure to submit a Statutory Annual Return (Form 4) will lead to the EB being frozen.
Where we consider that a regulatory breach has occurred, we investigate and take appropriate action. ENTRUST's process for managing breaches of the Landfill Tax Regulations is detailed in the enforcement framework which is available on the right hand side of this page. The framework allows for incidences of non-compliance to be addressed based on their nature and any previous breaches. Dependent on the seriousness of the breach or where it is considered funds are at risk we will decide to start the process at a later stage. The ultimate sanction is referral to HMRC for consideration of forcible revocation of the EB from the LCF scheme and potential clawback of tax credit from the LO.
Each case is unique and will be considered on its own facts and merits. However, there are a number of principles that apply in all circumstances and which ENTRUST will adopt.
The decision to impose sanctions against an EB is a serious step. A fair, transparent and proportionate enforcement framework is essential to the maintenance of stakeholder confidence in the regulation of the LCF.
At all stages of the enforcement process we will work with you as an EB to try to remedy the breach and coach you to compliance.
A summary of your obligations as an EB to remain compliant with the Regulations can be found on the right hand side of this page.