HM Revenue & Customs has set up a taskforce to tackle scrap metal dealers not paying enough tax.
The initiative, one of five taskforces set up to tackle tax evasion around the country, will focus on dealers in Scotland.
The Government aims to raise an extra £7bn each year by 2014/15 by addressing tax evasion, avoidance and fraud.
Exchequer Secretary David Gauke said: “We will not tolerate those who break the rules. This taskforce will come down hard on scrap metal dealers and their customers or suppliers who have chosen to break the rules or deliberately evade the tax they should be paying. This is just the start.
“It doesn’t matter who you are - HMRC can and will track you down. You will face a heavy fine, a possible criminal prosecution and ultimately jail. Honest businesses have nothing to worry about.”
The other four taskforces will be focusing on: construction traders in the North West and North Wales; taxpayers not submitting statutory returns across Corporation Tax, Income Tax Self Assessment, PAYE and VAT in the South East; fast food outlets in Scotland; and landlords owning or renting three or more properties in the North West and North Wales.