Nicky McFadden (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Finance if a mandatory minimum fine will be introduced under the Finance Act on conviction of cigarette smuggling and illegal cigarette selling; and if he will make a statement on the matter. [53773/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Section 119, as amended, of the Finance Act 2001 contains penalties for offences in relation to cigarette smuggling. That section sets out the various actions that constitute offences of evasion or attempted evasion of excise duty, as well as the penalties, by way of a fine or imprisonment, for such offences. Where a conviction for an offence under section 119 occurs following a summary prosecution, the fine that may be imposed is €5,000. A Court may also impose a term of imprisonment not exceeding 12 months, either instead of or in addition to the fine. For convictions following prosecution on indictment, the applicable fine is an amount not exceeding €126,970 or, where the value of the tobacco products concerned is greater than €250,000, not exceeding three times the value of the products. The Court may also impose a term of imprisonment not exceeding 5 years, as an alternative, or in addition, to the fine.

Section 78 of the Finance Act 2005 includes penalties for the illegal sale of tobacco products. A Court may, following a summary conviction, impose a fine of €5,000 or a term of imprisonment not exceeding 12 months, or both. The penalty following conviction on indictment is a fine not exceeding €126,970 or imprisonment for a term not exceeding 5 years, or both a fine and imprisonment. The specific penalty to be imposed in any particular case is a matter for the Courts. Section 130(2) of the Finance Act, 2001 permits a trial judge, in his or her discretion, to mitigate a fine incurred for an offence under excise law, provided that the amount so mitigated is not greater than 50% of the amount of the fine.

The fines for excise offences have been increased in the recent past; those that apply in the event of conviction on indictment were increased substantially by the Finance Act 2010. The need for further changes will be kept under review, taking account, among other considerations, of practical experience of the operation of the increased fines.