Mineral Oil Traders
Reckless supply or delivery of marked fuel
Any person who supplies or delivers:
- Marked Gas Oil (MGO)
- Ultra-Low Sulphur Marked Gas Oil (ULSMGO)
- Marked Kerosene
may be liable for the Mineral Oil tax that has been evaded, including interest and penalties. This will arise where such product is subsequently laundered or is otherwise the subject of a Mineral Oil Tax fraud.
The trader is liable where they:
- were reckless as to whether or not
they were participating in a transaction, or series of transactions, connected to the evasion of Mineral Oil Tax.
The trader is liable, even if they have not been directly involved in the evasion, whether the evasion has been effected:
- by the customer to whom the supply or delivery is made
- at a subsequent point in the supply chain.
Responsibilities of Mineral Oil Traders
Traders are responsible for carrying out due diligence regarding the supply and delivery of marked fuels. Traders must be satisfied as to the bona fides of the customer before the delivery is made.
Traders should take adequate steps to know their customers. Traders should be satisfied that marked fuels supplied to customers are for legitimate rebated use.
Indicators of Evasion of Excise Duty in Marked Oils
The following list provides some examples of evasion indicators of Excise Duty in Marked Oils. This list is not exhaustive:
- The customer has no obvious requirement for the marked fuel concerned.
- Orders for large volumes of marked fuel by or for transport operators.
- Payment by cash, bank draft, third party cheque, cheque with payee's name omitted.
- Payment by any means that might hinder the tracing of the payment.
- Large volumes being delivered to a domestic address or other ‘non-commercial’ location.
- Delivery to a road tanker at a place other than the address of the customer (for example, on the roadside or in a field).
- Supply to an unmarked road tanker or a tanker with poor quality or out of date livery or temporary or mobile storage tanks.
- Delivery to a place that is not the premises or address of the purchasing customer.
- A mobile phone number is the only point of contact for the customer.
- The customer does not have adequate storage facilities for the quantities of fuel concerned.
- Delivery to a mineral oil trader who does not hold a marked fuel trader’s licence (check the register of licenses).
- Delivery to a non-farming business customer who is not registered for VAT.
- Customer does not appear to be particularly concerned about the price of the marked fuel or the payment terms.
- The quantity of marked oil concerned is an important factor in any judgement.
Traders should be alert to, and avoid, any transactions that may be connected with tax fraud, unusual or suspicious.
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