Dáil Éireann Debate, Tuesday - 9 June 2015
283. Deputy Joe Costello asked the Minister for Finance the steps being taken to deal with the illegal sale of tobacco; his plans to strengthen the legislation dealing with its sale; and if he will make a statement on the matter. [22298/15]
Amharc ar fhreagraI am advised by the Revenue Commissioners that combating the illegal tobacco trade is, and will continue to be, a high priority for Revenue. Their work against this illegal activity includes a range of measures designed to identify and target those who are engaged in the supply or sale of illicit products, with a view to seizing the illicit products and prosecuting those responsible. This multifaceted strategy includes ongoing analysis of the nature and extent of the problem, developing and sharing intelligence on a national, EU and international basis, the use of analytics and detection technologies and ensuring the optimum deployment of resources at points of importation and within the country.
Interception of illicit tobacco products is achieved by Revenue through a combination of risk analysis, profiling and intelligence and the screening of cargo, vehicles, baggage and postal packages. Revenue officers also target the illicit trade at the post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private and commercial premises.
Revenue co-operates extensively with An Garda Síochána in combating the illicit trade, and the relevant agencies in the State also work closely with their counterparts in Northern Ireland through a cross-border group on tobacco enforcement to target the organised crime groups that are responsible for a large proportion of the illegal tobacco market. In addition, co-operation takes place with other revenue administrations and with the European Anti-Fraud Office (OLAF) in the ongoing programmes at international level to tackle the illicit trade.
Revenue's action against the illegal trade has resulted in significant seizures of illicit products, and in convictions of persons involved in the smuggling or sale of illicit products. In 2014 53.4 million cigarettes and 9,824 kilogrammes of tobacco were seized, and seizures this year, to the end of April, amounted to 22.1 million cigarettes and 634 kilograms of tobacco. There were 53 summary convictions and 4 convictions on indictment for tobacco smuggling, and 49 summary convictions and 5 convictions on indictment for the selling of illicit tobacco products, in 2014.
A strong legislative framework is in place to combat the illegal tobacco trade. It is an offence to hold, produce, deliver or deal in untaxed tobacco products and to sell unstamped tobacco products. A court may impose heavy penalties for these offences and the tobacco products concerned in the offence are liable to forfeiture. On conviction following summary prosecution, a court may impose a fine of €5,000, or a term of imprisonment not exceeding 12 months, or both a fine and imprisonment. On conviction following prosecution on indictment, the court may impose a fine of up to €126,970, or a term of imprisonment not exceeding 5 years, or both a fine and imprisonment. A higher fine may be imposed where the value of smuggled tobacco products (inclusive of any tax or duty payable on them) is greater than €250,000; in such cases the court may impose a fine of an amount not exceeding three times their value.
I have introduced a number of legislative measures in recent years to assist Revenue in dealing with tobacco smuggling and illegal tobacco sales. Measures in the Finance Act 2012 clarified the legal basis for Revenue officers to open and examine the contents of postal and courier packets that are reasonably believed to contain untaxed excisable products. In the Finance Act 2013, I introduced new offence and forfeiture measures relating to the illicit production of tobacco, including offences of keeping materials and equipment for the purposes of illicit tobacco production, and provision for forfeiture of any equipment, materials, or unmanufactured tobacco used for illicit production. In the Finance (No. 2) Act 2013, I strengthened the obligation of a person suspected of dealing in unstamped tobacco products to provide information to a Revenue Officer or a Garda and to present any tobacco products concerned for examination. The measure also allows the Officer or Garda to search any bag or other receptacle that he or she reasonably believes to contain tobacco products that are concerned in the offence.
I am satisfied that the current legislative framework provides an effective basis for action by Revenue against the illegal tobacco trade and I will support any proposals for additional measures that are shown to be of assistance to Revenue in this area.
