Written answers

Tuesday, 3 March 2015

Department of Finance

Tax Avoidance Issues

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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181. To ask the Minister for Finance if consideration will be given to the introduction of a substantial minimum fine/sentence on conviction for smuggling; and if he will make a statement on the matter. [9244/15]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The penalties for smuggling an excisable product are laid down in section 119 of the Finance Act 2001 and were increased substantially in the Finance Act 2010. On conviction following summary prosecution, a court may impose a fine of €5,000; the court may also impose a term of imprisonment not exceeding 12 months, instead of, or in addition to, the fine. For convictions following prosecution on indictment, the court may impose a fine not exceeding €126,970 or, where the value of the product involved in the offence is greater than €250,000, a fine not exceeding three times the value of the product. The Court may also impose a term of imprisonment not exceeding 5 years as an alternative to or in addition to these fines. Section 130 of the 2001 Act permits a trial judge, at his or her discretion, to mitigate a fine incurred for an offence under excise law, provided that the amount mitigated is not greater than 50 per cent of the amount of the fine. 

As the Deputy is aware, the penalty to be imposed in any particular case is a matter for the courts, which have a great deal of discretion in this area.  Where the courts believe that a prescribed fine is too onerous given the facts of the case and the circumstances of the person convicted, they can mitigate the fine and/or impose suspended custodial sentences.   

I have no plans to introduce minimum sentencing. However, the position in relation to penalties is kept under review, taking account, among other considerations, of practical experience in the operation of the increased fines provided for in the 2010 Act.

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