It seems that HMRC have made a bit of a "boo boo", and confiscated fags that they shouldn't have.
The Independent reports that fags seized from tobacco smugglers over the past eight years will have to be returned, because Customs officers unlawfully confiscated their assets.
HMRC are are re-examining approximately 4,000 cases, where confiscation orders were granted to seize the assets of people involved in fag smuggling.
HMRC may have to pay it all back, plus legal costs and compensation.
The law changed in 2001, only the masterminds and those who smuggled the fags have to pay the duty, unfortunately HMRC didn't spot the change in the law until last year.
HMRC face having to return up to £88M of tobacco smuggling assets, before costs and damages.
As Paul Holmes, Liberal Democrat home affairs spokesman, says it's "a complete farce".
Tax does have to be taxing.
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