Ivor Callely
Ceist:62 Mr. Callely asked the Minister for Finance his views on whether the Revenue authorities have failed to use their powers to target crime and drug barons; and if he will make a statement on the matter. [12213/96]
Vol. 466 No. 7
62 Mr. Callely asked the Minister for Finance his views on whether the Revenue authorities have failed to use their powers to target crime and drug barons; and if he will make a statement on the matter. [12213/96]
Action to deal with criminals is primarily a matter for the gardaí. The Revenue Commissioners do, however, have an important part to play within their overall remit of assessing and collecting taxes and implementing import and export controls. 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 primary role of the Revenue Commissioners in combating drugs trafficking is played by the Customs Service, which is responsible for deterring and preventing smuggling of illicit drugs. The Revenue Commissioners have devoted very considerable resources to this area and, in particular, they set up the Customs National Drugs Team in 1992, with specific responsibility for detecting and preventing drug smuggling. Since 1993 over 50 people detected by Customs smuggling drugs at ports and airports have been detained and transferred to Garda custody. So far, there have been convictions in 23 cases, with jail sentences ranging from three months to ten years, being imposed. Some cases have yet to be heard, while sentencing is due in further cases. There have also been prosecutions under Customs legislation for other illegal activities.
As regards taxation, section 19 of the Finance Act, 1983, allows the Revenue to bring unexplained profits, whether derived from illegal activities or otherwise, into charge to income tax as "miscellaneous income". The challenging of an unexplained build-up of capital has traditionally been the route used by Revenue's Investigation Branch in tackling many of the serious tax evasion cases. Section 19 has been brought into play on occasions where no satisfactory explanation was offered by a taxpayer as to the source of the capital. A number of those cases concern persons suspected of being involved in criminal activities such as drug trafficking.