Ruairi Quinn (Dublin South East, Labour)
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Question 96: To ask the Minister for Finance the maximum penalties available in summary proceedings or following trial on indictment in respect of smuggling of cigarettes and other tobacco products; when these penalties were last increased; if he is satisfied with the range of penalties; if he is satisfied that appropriate cases are being brought on indictment; if he is satisfied himself with the penalties imposed; and if he will make a statement on the matter. [26054/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The offence of smuggling of cigarettes or other tobacco products is normally prosecuted under section 119 of the Finance Act 2001, which relates to the evasion or attempted evasion of excise duty.

Where a person is convicted following summary prosecution, the Court may impose a fine of €5,000, or imprisonment for a term not exceeding 12 months, or both. The amount of the fine was last increased by the Finance Act 2008.

The fine that may be imposed on conviction on indictment was increased substantially by the Finance Act 2010, so that it would better reflect the seriousness of the offence. If the value of the goods involved is €250,000 or less, the Court may impose a fine not exceeding €126,970. If their value is greater than €250,000, the maximum fine is three times the value. A term of imprisonment of up to 5 years may also be imposed.

There is provision also, in section 13 of the Criminal Procedure Act 1967, for certain cases prosecuted on indictment to be dealt with in the District Court, in specified circumstances. In such cases, the fine on conviction was increased to €5,000 by the Finance Act 2010. Prior to that, a fine not exceeding €1,269 could be imposed. The maximum term of imprisonment in such cases is 12 months.

The Finance Act 2005 provides for other offences relating to cigarettes and other tobacco products, including offering for sale or keeping for sale or delivery packs of cigarettes or roll-your-own tobacco that don't have the requisite tax stamp on them. The fines on summary conviction for those offences are generally the same as those for offences under section 119 of the 2001 Act and, as in that case, the current fine of €5,000 was introduced by the Finance Act 2008. For cases prosecuted on indictment, an increased fine of up of €126,970 was brought in by the Finance Act 2010.

I believe that the penalties are set at a level which constitutes a significant deterrent to smuggling and other tobacco-related offences.

The decision as to whether cases are prosecuted summarily or on indictment is a matter for the Director of Public Prosecutions, having regard to considerations such as the seriousness of the alleged offence and the value of the goods involved. The penalty to be applied in a particular case following conviction is, of course, a matter for determination by the Courts, having regard to all the relevant circumstances.