Print Page
News & Press: International News

Ireland: Black market trading costing economy €1.5 billion

Friday, 26 April 2013   (0 Comments)
Posted by: Author: Irish Times
Share |

Source: Irish Times

The illicit trade of counterfeit goods is costing the economy up to €1.5 billion a year, a study has claimed.

Retailers warned the impact of black market is worse than previously thought with Irish businesses and exchequer losing out to organised crime.

They called for harsher penalties, a public awareness campaign and international co-operation to combat the trade of illegal fuel, tobacco, digital entertainment and pharmaceuticals.

Frank Gleeson of Retail Ireland, said: "The financial impact of illicit trade identified in this report is even worse than suggested by our previous research.

"Whilst the Government has recognised the seriousness of the problem, there is a lot more that it could do to help Irish retailers who are suffering lost sales to illegal operators.

"Consumers also have a role to play in realising that buying cheaply-priced goods sold informally or door-to-door is not a victimless crime, but one that is damaging the Irish economy and putting legitimate distributors out of business.

Tax specialists Grant Thornton and Retail Ireland jointly published the report entitled "Illicit trade in Ireland: Uncovering the cost to the Irish economy”.

It calculated the estimated financial losses to the exchequer are equivalent to 12 per cent of the total interest bill of the €8 billion the Government expects to pay on Ireland’s national debt in 2013.

The figures include uncollected taxes of as much as €937 million and €547 million in losses to retailers and businesses such as record companies.

The figures include up to €466 million lost from fuel laundering and €691 million from counterfeit cigarettes.

Elsewhere illegal downloads of music, computer games and computer software are said to cost in the region of €269 million, partly leading to financial difficulties and job losses at companies like HMV, Golden Discs and Game.

And it stated almost €60 million is lost to the exchequer by consumers buying counterfeit drugs rather than bone fide exports from pharmaceutical companies based in Ireland.

Brendan Foster, at Grant Thornton, said illicit trade is costing the state hundreds of millions of euro at a time when every cent of tax revenue is vital to the recovery of the public finances.

"Legitimate businesses are finding it impossible to compete against fraudulent goods being sold by organised criminal gangs whose illegal actions must be stamped out to avoid further business closures and job losses,” he said.

Separately, figures released yesterday by Revenue customs officers detected and dismantled 11 illegal oil plants and seized more than one million litres of illegally laundered fuel.

Elsewhere it said 95.6 million counterfeit cigarettes and 5,277kg of tobacco were seized last year, valued at €43.3 million and €1.95 million respectively.



Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

  • Tax Practitioner Registration Requirements & FAQ's
  • Rate Our Service

    Membership Management Software Powered by YourMembership  ::  Legal