I am informed by the Revenue Commissioners that they monitor the effectiveness of their programmes and strategies for counteracting the illicit tobacco trade on an ongoing basis. As part of this process the legislative penalties for excise evasion are regularly assessed in terms of their deterrent value. In this regard the Finance Act 2010 introduced significantly increased monetary penalties for tobacco offences. The penalty for conviction on indictment was increased from €12,695 to €126,950, or up to three times the duty paid value of the goods, whichever is the greater. The new penalties are applicable in respect of court convictions for offences occurring after the passing of that Act.
The Commissioners are satisfied that the new provisions are working effectively. In addition to monetary penalties imposed on conviction, in 2011 there were forty-five custodial sentences for tobacco tax offences, of which twenty-eight were suspended. Revenue initiatives to counteract the illicit tobacco trade include:
the establishment of a high level internal group, chaired at Commissioner level, to examine the risks related to tobacco products tax evasion and to oversee and optimise the detection of contraband and counterfeit tobacco products,
the adoption of a comprehensive tobacco strategy, which is underpinned by annual action plans. This 3-year (2011-2013) strategy, which is published on Revenue's website www.revenue.ie, includes a number of programmes, which are designed to complement each other in targeting the supply and demand sides of the market for contraband tobacco in Ireland,
the commissioning of surveys in 2009, 2010 and 2011 by the Revenue Commissioners and the Office of Tobacco Control to establish smoking trends,
the introduction of substantially increased legislative penalties in the Finance Act 2010 for the smuggling and sale of illicit tobacco products,
further development of cooperation and intelligence sharing at organisational, national and international level,
a commitment to prosecute all serious cases of tobacco tax evasion and a focus, in partnership with other Government agencies, on reducing the demand for contraband tobacco.