Some maximum imprisonment terms for indirect tax evasion is set to increase from 7 to 14 years if legislation is approved by Tynwald in October 2024.
The legislation, Customs and Excise Acts 1986 (Amendment) Order 2024, makes amendments to three Acts relating to the management of customs and excise in order to align the maximum prison sentences for direct tax evasion offences with the equivalent United Kingdom legislation.
The Customs and Excise Duties (General Reliefs) Act 1986 is amended to increase the maximum imprisonment term from 7 to 14 years in relation to offences for breaching the conditions associated with the reliefs from the payment of indirect taxes available on goods use for certain purposes.
The Customs and Excise Management Act 1986 is amended to increase the maximum imprisonment term from 7 to 14 years for offences relating to the improper importation and exportation of goods (including prohibited and restricted goods) and the evasion of customs and excise duties. Where maximum sentences in this Act are greater than 14 years, these sentences have not changed.
The Hydrocarbon Oil Duties Act 1986 is also amended to increase the maximum imprisonment term from 7 to 14 years for offences that contravene restrictions in relation to the use of certain controlled hydrocarbon oils.
The United Kingdom Government amended its equivalent customs and excise legislation by way of the Finance Act 2024 in February 2024. Although the amendments concerning the imprisonment terms are not strictly specified as a requirement under the terms of the Customs and Excise Agreement 1979 ('to keep the law relating to the management of the Customs and Excise revenues and associated control functions correspondent with that of the United Kingdom') they are considered to be prudent to deter serious criminal actions which can reduce the revenues available to fund public services.
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