The Hindu Business Line : Laundered diesel, dangerous cheese and smoking guns

YOU know about money laundering. Ever heard of diesel-laundering? No, it's not the use of a slimy fuel for dry-cleaning your clothes but an `oils fraud' perpetrated through the removal of `government marker' from diesel, as a news release on the UK taxman's site http://customs.hmrc.gov.uk informs.

"Red diesel is marked `gas oil' or `a rebated fuel for use in agricultural machinery and not for use in road vehicles'. Green diesel is the Republic of Ireland equivalent of the UK's red diesel," it states. Launderers filter the fuel through `chemicals or acids' that may continue to remain in the fuel and "damage fuel pumps in diesel cars."

Thus, according to a statement dated June 21, a multi-agency operation cracked down upon two laundering plants in farm buildings and "stopped a substantial amount of harmful diesel entering the legitimate fuel market and affecting honest businesses."

Hotline number is given to let people inform the department "of any fuel misuse or suspicious activities in their area" because of "the environmental and safety issues surrounding laundering plants" such as "damage caused by contamination to arable land and water and rivers."

Another press release dated June 14 titled, `Jail sentences for fraudsters in North West', speaks of "successful prosecutions" of 13 fraudsters resulting in "11 jail sentences totalling 26 years in addition to fines and corporate disqualifications."

Combined, these cases involved the evasion of nearly £3 million in revenue, one learns, and there is the disarming quote of an official, "It may seem like a busy few days for our investigation and prosecution teams, but this is our normal day-to-day work, tackling organised tax fraud and criminal activity." Yet, you can smell some selling to go with the bulletins: "These cases demonstrate our continued commitment to protecting society and honest businesses in the region. Each case demonstrates the variety of work we do and how seriously we view these frauds."

`Cheesed off!' proclaims yet another release, reporting the seizure of 88 kilos of cheese by tax officers at the Heathrow Airport on June 1. A food and commodities trader living in Paris was arrested; he had pleaded that only half was intended for sale, but was sentenced to 28 days imprisonment. The Head of Customs Operations at the airport has said that his department "is determined to crack down on those who attempt to smuggle illegal foodstuffs." Notes for editors inform about the `Products of Animal Origin Third Country Imports Regulations 2004' and cite a comment of Magistrates that they regarded the crime as `a danger to the food chain' in the UK. Anti-tobacco lobby will find enough meat in a June 7 case about a couple arrested after "1,37,980 cigarettes, a quantity of tobacco and three vehicles were seized" from their domestic premises.

The taxman's PR informs that you can catch up with the counter-strategy titled, `Tackling Tobacco Smuggling, Tackling Indirect Tax Losses and Protecting Indirect Tax Revenues' on www.hm-treasury.gov.uk and also see `the latest research report on counterfeit tobacco' on www.hm-treasury.gov.uk. "For further details of tobacco statistics and the dangers of these products see Customs release NAT53/04 (available on the GNN Web site at www.gnn.gov.uk) ," it adds, earnestly pursuing smoking guns!

ExParte@TheHindu.co.in

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