Waste management firm to ‘robustly challenge’ HMRC land fill tax probe

Wetherby waste management group Augean has said it will “robustly challenge” an investigation by HMRC on whether the company has paid sufficient land fill tax in relation to its treatment and disposal of hazardous waste.

The company said it has been notified of an assessment by HMRC for landfill tax of £1.9m with interest of £0.2m for the three months ended August 31, 2013.

Augean said this morning: “Based on the legal and other advice received by the group over several years, Augean is very confident that the group has met its obligations in respect of landfill tax, consistent with the law and official guidance at the time.

“Augean believes this assessment to be without merit and we will appeal.”

The company also said that landfill tax legislation is “not totally prescriptive on the tax treatment of the many types of waste received by the group which can lead to differences in opinion on the applicable rate of landfill tax”, hence the reason the group has taken “extensive legal and other advice” over several years.

Augean said that should HMRC make further such assessments, for this and one other subsidiary, the total amount that could potentially be claimed “could be very large”.

“Supported by advice from leading counsel and its solicitors, the group will robustly challenge this landfill tax assessment and any other subsequent assessment it may receive from HMRC, through the tax tribunal system if appropriate,” the company said.

“ The group currently intends to account for the legal costs of the dispute with HMRC as an exceptional item but not to make a provision for this assessment based on the strength of legal opinion received.”