HCOS1200 - Introduction: UK Oils Strategy
General
The UK Oils Strategy, is an assurance based strategy aimed at cutting the level of fraud by controlling the availability of rebated fuels.
The focus of the UK Oils Strategy is to stop large scale criminal and commercial fraud by combining law enforcement action with better control of the sale and distribution of red diesel, or Marked Gas Oil (MGO), kerosene (including Aviation Turbine (jet) fuel, or AVTUR) and tied oils. The UK Oils Strategy applies equally in Northern Ireland but there is an additional strategy for Northern Ireland to deal with smuggling and related issues.
Strategy principles
- To work with honest distributors in the regulatory regimes to improve our control of the distribution chain for rebated oils and tied oils.
- To concentrate activity against those who are knowingly supplying rebated or tied oil for misuse and those that are misusing it.
Assurance objectives
- For both the RDCO and tied oil schemes, to educate and assure approved traders.
- For the RDCO scheme, to gather customer and sales information from rebated oil distributors to identify potential misusers and target Fraud Investigation Service activity.
- To recover revenue from misusers by carrying out post detection audits and through issuing assessments.
- Maximise impact through cross-tax awareness and liaison with other business streams.
- For the RDCO scheme, to ensure additional duty collected on sales of marked gas oil for use in private pleasure craft is paid and correctly accounted for.