A major campaign to stamp out excise duty and VAT fraud on alcohol is underway with a number of cash and carries, off-licences and a pub facing action.
Yesterday, 20 men were arrested and bailed in an estimated £50m excise duty and VAT fraud linked to the abuse of the international bonded warehouse system.
It is suspected that alcohol, bought duty free and said to be destined for markets in the European Union, was smuggled back into the UK market without the appropriate payment of excise duty and VAT.
The men were arrested by Her Majesty's Revenue & Customs (HMRC) criminal investigators during co-ordinated raids on 12 commercial and 17 domestic premises across the South East and the Midlands yesterday.
Co-ordinated searches are also being undertaken in Germany. HMRC said no further details could be released as investigations were on-going.
Off-licence action
Meanwhile, 11 off-licences and convenience stores in Kent face a licence review after a police-led mutli-agency operation.
All 11 face charges of duty fraud and licence reviews by Thanet District Council will commence next week. The majority of cases involve suspected unpaid duty on Italian wine.
Operation Synergy targeted 50 off-licences in the area but only had time to visit 19, such was the extent of problems they found ranging from lack of fire certificates to counterfeit spirits and imported wine without duty paid.
Police have warned it may be the "tip of the iceberg".
In Swindon, an off-licence, VK Stores on County Road had its licence suspended for 12 weeks from 31 December and owner Mohamed Meeran Hussain removed as the designated premises supervisor after officials found counterfeit and smuggled alcohol.
HMRC officials visited the store on 2 February this year and found that some duty stamps were fake. It confiscated 126 bottles of wine and spirits and the owner was unable to provide valid invoices.
More than a hundred bottles of beer which were not labelled in English and were not meant for UK sale were also detained.
Loss of licence
A pub in Camperdown, North Tyneside has also had its licence revoked after being found to be selling vodka and wine without paying duty. The Grey Horse Inn was targeted by police who confiscated 77 litres of Aros Italian vodka and 72 litres of Italian wine.
Legal expert Peter Coulson said: "HMRC has begun to target licensed premises in several parts of the country recently through the review process.
"Although they are not responsible authorities themselves, they are linking with trading standards or the police to bring review proceedings leading to suspension of the licence or in serious cases revocation when contraband or non-duty paid goods are found.
"Licensees should be warned that dealing with suspect alcohol in this way can lead to the loss of the licence."