HCOS4025 | Post detection audit and assessment: background

General

Most post-detection audit cases result from Road Fuel Testing Unit (RFTU) detections of the misuse of rebated fuel in road vehicles, contrary to s12(2) of Hydrocarbon Oils Duties Act 1979 (HODA). Therefore this section concentrates on these types of cases. There is, however, some new material on biofuels and on laundered fuel.

The objective of Post Detection Audits is to assess for repayment of the rebate allowed on the total quantity of rebated oil used by the offender. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Successful completion of Post Detection Audits depends on cooperation and communication between the Fraud Investigation Service (FIS), the Risk and Intelligence Service (RIS) - which includes RIS Profile and Case Delivery and Individual and Small Business Compliance (ISBC) teams.

Post detection referral procedure

Under the Service Level Agreement (SLA) agreed between stakeholders for PDAs, all intel and detection cases are notified to the appropriate parts of RIS.

FIS establish the offence following the SLA procedures. If the offence is established, FIS then pass all the paperwork relating to the detection to RIS. (This will include a full photocopied Case File, containing copies of notebook interviews and a case summary, and will also include an Audit Referral Checklist).

RIS add value to the information supplied by SI via HMRC systems, determine if the case is to be selected for audit and if so, issue the case to ISBC teams via Caseflow.

ISBC Assurance Teams then carry out a Post Detection Audit, raise any Assessment needed, and notify the results of the completed audit back to RIS by completion and closure on Caseflow.