Revenue & Customs tax probe could reach £1.2bn for Biffa

£1.2bn takeover by waste management company Biffa could be thrown into doubt by HMRC landfill tax inquiry

Biffa’s £1.2billion takeover could be challenged by a landfill tax investigation.

Revenue & Customs is looking into the waste management company’s accounts which could lead to a £168million bill.

The company’s FTSE250 accounts show it has so far only earmarked £20million for it.

Review: Revenue & Customs review Biffa accounts which could lead to £168m bill

The investigation could also complicate an offer from Energy Capital Partners.

A City tax source said: ‘No buyer will like the prospect of paying £168million. They will no doubt want a very intensive detailed discussion on this subject.

Biffa’s latest market update said the maximum liability had increased by £15m, from £153m, while the minimum was £170,000.

No formal tax claim has yet been filed against Biffa, but accountant Ernst & Young has been recruited to advise the company.

Biffa said he thought he had a “solid defence”.

Biffa has been contacted for comment.

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Sallie R. Loera