Dáil Éireann debate -
Tuesday, 18 Jun 1996

Vol. 467 No. 1

Written Answers. - Drug Trafficking.

Liam Fitzgerald

Question:

103 Mr. L. Fitzgerald asked the Minister for Finance the number of customs officials currently working on drug-smuggling throughout the country; the number of customs officials so deployed in 1991; his views on whether there should be a substantial increase in the numbers so deployed and that they should have a much greater role to play in the future in combating this heinous crime; and if he will make a statement on the matter. [12765/96]

Minister for Finance (Mr. Quinn)

The Customs service has primary responsibility for preventing the illegal importation of controlled drugs. In the Single Market era, the Customs service is required to play an increased role in protecting not only our own frontier, but also the Irish section of the external EU frontier against the illegal importation of drugs. As I have informed the House on a number of occasions, the Revenue Commissioners responded to that situation by allocating substantial resources to this area, in particular by setting up the Customs National Drugs Team in 1992 with specific responsibility for detecting and preventing drug-smuggling. This dedicated team operates on a countrywide basis, including at air and sea ports, and it also supplements the general cadre of Customs and Excise staff who are also responsible for combating drug smuggling as part of their normal duties.

I am informed by the Revenue Commissioners that in 1991, the number of staff assigned exclusively to dealing with drug-smuggling was 12. This special resource consisted of one drug unit at headquarters, four sniffer-dog units and one maritime unit.

The current strength of the Customs National Drugs Team is 69 and comprises head office staff, three operational units, 13 intelligence units, five maritime units and six sniffer-dog units. I would stress again that this dedicated team is in addition to the general body of Customs officers distributed around the country whose duties include work to combat drug-smuggling.

The Customs service and the Garda co-operate closely in fighting drug-trafficking under their new memorandum of understanding. Customs have also enlisted the assistance of companies and organisations engaged in the importexport trade in fighting drug-smuggling through the memorandum of understanding programme as well as the general public through the drug watch programme, which encourages coastal communities and maritime personnel to report unusual occurrences in their areas to Customs by freefone or freepost.

The Customs service already plays a most important role in combating drug-smuggling and there are no plans to extend this role. I am satisfied that the present resources available to Customs in co-operation with the other enforcement agencies are adequate. The deployment of resources is, of course, kept under constant review. The main focus will continue to be on intelligence driven operations.

Liam Fitzgerald

Question:

104 Mr. L. Fitzgerald asked the Minister for Finance the number of suspected drug traffickers that have been investigated for tax purposes by the Revenue Commissioners; the progress, if any, made in this regard; the amount of tax revenue, if any, collected for each of the tax years 1994-95 and 1995-96 as a result of such investigations; his views on the statement attributed to a State solicitor (details supplied) in Cork that well-known drug smugglers known to the Revenue Commissioners have been untouched for years; and if he will make a statement on the matter. [12766/96]

Minister for Finance (Mr. Quinn)

The Revenue Commissioners are committed to applying the tax laws against persons who may have derived profits or gains from illegal activities including drug trafficking. I am satisfied, on the basis of my discussions with, and assurances from, the Commissioners that they are using their powers as best they can in the areas referred to by the Deputy.

The Deputy will appreciate that there are considerable difficulties for Revenue in dealing with this type of case. As the individuals concerned carry on their activities in a clandestine fashion, they are not amenable to the normal controls and checks which Revenue brings to bear in the detection of tax evasion. Properties or bank accounts with which they may be associated will not necessarily appear in their names. Consequently, the Revenue task is focused on establishing the level of wealth and asset ownership of such persons and in addition to its own researches, Revenue is dependent on receiving hard information from other agencies — in particular the Garda — to progress inquiries which may have to proceed over a long period. Anecdotal information is of little value in itself as it does not conclusively identify asset ownership, and indeed in some instances can be misleading.

Where Revenue can establish the necessary information they will make an assessment to tax under section 19 of the Finance Act 1983 which provides that profits from an illegal or unknown source may be assessed to tax under the description "Miscellaneous Income". This mechanism represents a recognition by the Oireachtas of the difficulties involved, in that Revenue does not have to prove that the profits are derived from drugs trafficking — in most cases, Revenue will not be in a position to do so.

The Revenue Commissioners have informed me that over the past few years they have been inquiring into the tax affairs of certain individuals in relation to whom information received suggested that their wealth and lifestyle could not be supported by known sources of income. These include the persons referred to in the comments attributed to the State Solicitor in Cork. There are currently approximately 40 such cases under various stages of inquiry. I understand that two of the 40 cases have recently been assessed under the miscellaneous income description and it is expected that further assessments will be entered in the coming months in other cases.

I am informed that a separate record has not been kept that would enable Revenue to indicate total tax collected in "section 19" cases and, indeed, not all such tax would necessarily relate to drugs cases. However, Revenue has indicated that in a number of cases that could readily be identified in recent years, a sum in the region of £1 million was collected in respect of miscellaneous income assessments, of which a relatively small amount refers to the two years mentioned by the Deputy. As I have indicated, the work of making further assessments is ongoing.