Bangley Quarry Biogas in East Lothian has been hit with a fine over an unpaid tax bill.
The controversial plant sparked objections from neighbours in Haddington, and has now been named as a 'deliberate tax defaulter' after failing to fork out almost £325,000. The firm told the Daily Record there had been a mistake and it was disputing the penalty.
A HMRC spokesman said: “We are committed to making sure people pay the tax they owe.”
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Plant operators were given the go-ahead for an 'anaerobic digester' at Bangley Quarry, to the north of the town, more than four years ago after the proposals split a planning committee in half. Construction began at the end of last year after developers were permitted to use animal waste to feed the plant despite concerns about the smell from local residents.
Developers had appealed to Scottish Ministers after East Lothian Council refused to lift a ban on animal byproducts (APBs) being used at the site. Greenforty Development, the firm linked to Bangley Quarry Biogas, claimed they had been approached by local farmers keen to supply 'slurry and manure' to the plant in return for the resulting compost in a 'fully circular economy'.
But a condition attached to the original planning permission for the plant banned the use of ABPs. When the firm asked the council’s planning committee to remove it the request was refused with one councillor dismissing claims the move would help local farms as 'greenwash'.
In August last year, the Scottish Government Reporter overturned the decision, ruling there was no evidence to back concerns about the impact on local residents from smell. It is believed the quarry could start producing natural gas next year.
A spokesman for Bangley Quarry Biogas said in December it had been 'overwhelmed' with local support, especially from the local farming community, and the renewable energy facility was a 'huge positive for East Lothian'.
But tax chiefs say the firm failed to pay tax between July 2018 and December 2019 - just months after plans for the plant were first approved. HMRC does not comment on individual cases but said publishing the details of deliberate defaulters is a tool used to combat tax evasion and non-compliance.
A spokesman said: “We are committed to making sure people pay the tax they owe.
“For the minority who refuse to pay, HMRC has a range of tools available and we are able to publish the names of those penalised under civil procedures for deliberately defaulting on certain tax obligations. This is about influencing behaviour by encouraging defaulters to engage with HMRC.”
A statement from Bangley Quarry Biogas said: “The Company disputes the findings of HMRC. The Company was dormant (not trading) during the period, therefore no tax is due.
“The Company is liaising with HMRC to ensure the penalty is removed imminently.”
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