John Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I thank the Deputies for their contributions to the debate. I believe Deputies on all sides of the House agree that smuggling, the shadow economy and activities in those areas pose a threat to legitimate and compliant businesses and consumers as well as depriving the Government of tax revenues. However, I do not think the solution is to adopt the approach set out in the Bill before the House.

A number of contributors to the debate made reference to reports that have presented estimates of the losses to the economy and the Exchequer caused by smuggling and the illicit trade. I point out, however, that estimating the extent of any illicit activity and the losses to which it gives rise is inherently problematic and must, therefore, be approached with caution. Unless a clear and credible methodology is specified for particular estimates of illicit trade and resulting losses they must be viewed as speculative. Having said that, there is no doubt that such activity impacts on legitimate businesses and Exchequer revenues. This is why Revenue sees combatting smuggling and the illicit trade as a core element of its work.

In tackling the illicit trade, Revenue operates as a fully integrated tax and customs administration. The organisation has more than 2,000 operational staff engaging in activities dedicated to targeting and confronting non-compliance, including activities related to anti-smuggling and anti-evasion, investigation and prosecution, audit, assurance checks, anti-avoidance, returns, compliance, debt collection and recovery. Revenue works closely with the other agencies of the State, including An Garda Síochána, in acting against illegal activities related to smuggling and illicit trade. The relevant authorities in the State also work closely with their counterparts in Northern Ireland to target organised crime groups that are responsible for a significant proportion of smuggling and other illegal activities. This work is supported and facilitated by the joint agency task force, including Revenue, An Garda Síochána and their Northern Ireland counterparts, established in the framework of A Fresh Start - the Stormont Agreement and Implementation Plan. Under the aegis of the task force a very successful joint initiative between Revenue and HM Revenue and Customs directed against suspicious movements of substitute fuel with potential for considerable excise and VAT fraud won the outstanding collaboration category at the UK Government's counter fraud awards in September 2016. From Revenue's perspective, this award recognises the excellent work and co-operation between Revenue and HM Revenue and Customs on investigations into the illegal movement of suspected substitute fuels. There is also close co-operation with relevant authorities in other jurisdictions, including the European anti-fraud office and other international bodies and agencies, in the ongoing programme of action at international level to combat smuggling and the illicit trade.

From a legislative perspective, the Minister has taken action through the Finance Acts over recent years to ensure Revenue has all the necessary powers to act against these forms of criminal activity. He is satisfied that as a result there is a robust legal framework in place that allows effective action to be taken against such crimes. As the Minister has said in the past, he is always open to discussing with Revenue any requirements it may have with regard to resources in the future to maximise its effectiveness in combatting illicit trade.

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