Biffa is “considering its options” after the Court of Appeal ruled in favour of HMRC last week in the long-running dispute over whether waste deposited as fluff at landfill sites is taxable.
The waste giant said it was “disappointed” with the verdict handed down by the Court of Appeal on 22 April, where all three judges ruled in favour of HMRC (see letsrecycle.com story).
The latest case was heard in the Court of Appeal (Civil Division) at the Royal Courts of Justice, London
The judges said the use of residual waste as fluff at landfill sites does not “negate the otherwise obvious intention to discard it”, overturning a previous verdict.
Any appeal by Biffa or the other waste companies involved could see the case eventually rise to the Supreme Court.
Veolia declined to comment.
HMRC
HMRC however has always claimed the amounts that being reclaimed constitute a large part of the tax that has been collected, and if the claims were ultimately upheld the environmental purpose of the tax would therefore be undermined because the cost of landfilling waste would be reduced.
In turn, this would “discourage recycling and using waste for other purposes rather than simply disposing of it to landfill”.
An HMRC spokesperson said: “HMRC is pleased with the Court of Appeal’s judgment that so-called fluff is liable to landfill tax.”
Consistent
“This case demonstrates the complexity of the landfill tax regime”
Jacob Hayler, executive director
Environmental Services Association
Following the ruling, executive director of the Environmental Services Association (ESA), Jacob Hayler, described the case as demonstrating the “complexity” of the landfill tax regime, and called for a “firmer grip” on tax enforcement across the waste sector.
Mr Hayler explained: “This case demonstrates the complexity of the landfill tax regime and the need for consistent enforcement of the tax rules across the sector. More broadly, we estimate that levels of misclassification of landfill material continue to be high and the latest landfill tax revenue gap of £275 million signals the need for a firmer grip on enforcement.”
Fluff
Fluff or a similar engineered product is used to line the bottom and top parts of landfill to protect surfaces and liners.
The post Biffa ‘considering options’ over landfill fluff ruling appeared first on letsrecycle.com.
Source: letsrecycle.com Waste Managment
