ALEXANDRIA’S landfill owes a staggering £99million in unpaid tax and penalties, a tribunal has confirmed.

Revenue Scotland first told Barr Environmental to pay up back in July 2018 for Scottish Landfill Tax (SLT) due, and the bill was confirmed earlier this month by the Tax Tribunal.

The firm’s Auchencarroch landfill site, along with Garlaff near Cumnock, were found to be using materials on their sites that should have been classed as waste.

Material was used for roads on site, cells (the individual portions of a landfill) and others and Barr claimed that meant they were not taxable.

Revenue Scotland, and now the First-Tier Tax Tribunal, disagreed.

They upheld the original tax due and penalties of £99,642,808.

West Dunbartonshire Council said they have five contracts with Barr for treating and disposing of household, bulky and organic waste, as well as street sweepings and wood.

They said they are discussing the case with their legal and procurement teams.

Barr refused to comment.

The environmental company said they used materials “that would otherwise have been disposed of in landfill as part of the engineering works associated with landfill construction and development”. And they argued they also followed the advice of their accountants, KPMG.

Barr said they invested in “materials recovery facilities” after the Scottish Government’s Zero Waste Plan to reduce the amount of rubbish going to landfills. They said it would help them keep contracts with local authorities and it was a key part of their pitch to councils.

They boasted they would save local authorities £10m in avoided landfill tax charges.

The diversion of waste to recycling and recovery was at the heart of Revenue Scotland’s and HMRC’s cases, said the Tax Tribunal.

Thousands of pages were submitted in evidence on the case related to hundreds of thousands of tonnes of waste.

The tribunal concluded: “We also consider it reckless to have used that process waste (including putrescible waste) in such large quantities for restoration without testing or ensuring that the materials would be considered suitable.

“We therefore confirm the penalty assessments on the basis of deliberate inaccuracy.”

A spokeswoman for West Dunbartonshire Council said: “The council has been advised by Barr of the outcome of its tax tribunal and is currently in discussions with our legal and procurement teams as we await formal notification from the firm.

“Our priority remains maintaining services and ensuring best value for our residents.”

A spokesman for Revenue Scotland told the Reporter: “We welcome the outcome in this case. It is a significant decision in a complex matter.

“Tax collected by Revenue Scotland stays in Scotland and is used to fund public services.”

Barr has 30 days from October 5 to appeal.

A spokesperson for the company said: “We cannot comment on something that is the subject of an ongoing legal process.”