Written answers

Wednesday, 3 December 2014

Department of Finance

Revenue Commissioners Investigations

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent)
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26. To ask the Minister for Finance the steps he is taking to curb the practice of petrol stretching; and if he will make a statement on the matter. [45952/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners, who are responsible for tackling fuel fraud, that they are very aware of the risks posed to consumers' vehicles, legitimate businesses and the exchequer by all forms of fuel fraud.

Every Filling Station about which a complaint was made has been visited by Revenue Enforcement officers and samples were taken for analysis by the State laboratory.

A total of 175 samples of petrol from Filling Stations and other sources have been taken for analysis following checks conducted from June 2014 to date.  The scientific analysis required is complex and time consuming and the State Laboratory has conducted extensive tests and re-tests on the samples.  Normally, when fraudsters attempt to "stretch" petrol, they add methanol, kerosene or other low excise duty agents.  Despite extensive testing by the State Laboratory, no evidence of the presence of methanol, kerosene or any other known prohibited stretching agent has been found in any of the samples, except two samples taken from one site on the eastern seaboard.  The conclusive results received in that particular case has resulted in seizure of the product, closure of the facility and a file is being prepared for prosecution.

Following a series of further tests conducted by the State Laboratory, results have been received in recent days which indicate the presence of traces of road diesel  in several samples taken from a variety of locations during August and September.  This could indicate that petrol was contaminated with road diesel at some point in time.  There is no rational economic reason or fraudulent incentive for anyone to deliberately mix normal road diesel with petrol.  This contamination could have taken place earlier in the summer, well ahead of the problems manifesting themselves in cars in Co Mayo and elsewhere.

If the problems that have come to light were caused by an unintended contamination as a result of diesel being inadvertently mixed into petrol at some point along the supply chain, there would be no Revenue offence involved.  However, the Deputies can be assured that the Revenue Commissioners are vigorously investigating the possibility of tax fraud being associated with the identified problems. In any instances where the analysis of petrol samples by the State Laboratory indicates the presence of illegal stretching agents, Revenue will take swift and robust action and pursue prosecutions against offenders where possible.

The Revenue Commissioners are also undertaking investigations in conjunction with An Garda Síochána. This includes sharing of information and intelligence and intensive monitoring of the situation.

In addition, as part of its routine compliance work Revenue actively monitor the mineral oil sector through analysis of monthly Return of Oil Movements and supply chain data. Any anomalies or breaches of Regulations detected are fully investigated as a matter of course.

I wish to assure the Deputy I am satisfied the Revenue Commissioners are taking all possible actions to identify the problem and challenge any instances of identified fuel fraud including, where possible,  pursuing prosecutions against offenders.

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