Dáil Éireann Debate, Wednesday - 16 January 2013
222. Deputy Dara Calleary asked the Minister for Finance the initiatives he is taking to combat the black market and other illegal activity in the retail sector; if his attention has been drawn to the impact of such activity on the retail business, retail jobs and on the public Exchequer; and if he will make a statement on the matter. [51853/12]
View answerI am advised by the Revenue Commissioners that they are very mindful of the unfair competitive advantage to be gained by those businesses that do not fulfil their tax obligations. Revenue’s tax and duty compliance programmes are under constant review to ensure that they are focussed on the areas of greatest risk, including risks from the shadow economy.
Revenue tackles the problem of the shadow economy through a range of compliance and audit interventions including targeted special projects. A variety of methodologies are used by Revenue to identify those who are operating in the shadow economy including covert surveillance, cold calls to businesses and venues as well as pre-arranged aspect queries on specific items. In addition, joint operations are conducted with the Department of Social Protection using Joint Investigation Units and there is a strong focus on cash businesses, given its potential high-risk nature.
I am confident that the Revenue Commissioners are pursuing a programme that is dealing in a very determined way with tax evasion in all its forms:
- In 2012, Revenue carried out more than 537,000 compliance interventions, yielding more than €492 million.
- For the period January to August 2012, specific Shadow Economy Projects carried out by Revenue show that in the cash business, white-collar cash, construction and rental sectors, a total of 1,963 audits were undertaken, with a yield in excess of €62 million.
Considerable success has been achieved in combating the illegal trade in tobacco products. In 2012, Revenue’s Customs Service seized a total of 95.6 million cigarettes from 8,105 seizures. A further 19,676 kilograms of other tobacco products were taken in 2012 from 1,397 seizures.
In addition to the ongoing enforcement action against the illegal fuel trade, steps are being taken to ensure enhanced control and supervision at all stages of the fuel supply chain.
Key actions include a strengthening of the licensing arrangements for businesses selling auto-fuel, and of the enforcement of licensing requirements. As well as these important licensing changes, a requirement operates from 1 January 2013 for all fuel traders to make electronic monthly returns to Revenue on their fuel transactions. This will facilitate Revenue in detecting unusual or anomalous patterns of activity.
Given the links of organised criminality with the illegal fuel trade, Revenue works closely with An Garda Síochána in combating it. Searches undertaken as part of intelligence-led operations have resulted in a considerable number of seizures of diesel and the closure of laundering plants, particularly in border counties.
The Revenue Commissioners advise that in 2012, 11 oil laundries were detected and shut down and 199,000 litres of oil were seized along with 28 vehicles and 5 trailers. There were 10 arrests in the course of these operations. In the period January to November 2012, 56 premises were closed.
Finally, I am further advised by the Revenue Commissioners that they hold regular meetings with trade and representative bodies through The Hidden Economy Monitoring Group where the risks posed by shadow economy activities are discussed. The Deputy should also note that changes are frequently made in tax legislation aimed at counteracting shadow economy activity. Two examples from 2012 include the introduction of the electronic Relevant Contracts Tax regime and an enhanced penalty regime for employers who fail to operate PAYE regulations fully.
