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AS MUCH AS €5.4 billion was laundered through Ireland in 2012, according to a new report from Grant Thornton.
The report advises that “the implementation of strong anti-money laundering (AML) legislation” is key to stopping this.
Improved reporting mechanisms are also required to highlight just how much of an effect it is having on the economy.
The scale is generally estimated to be between 2 and 5 per cent of Gross Domestic Product (GDP), equating to between €3.1bn and €7.8bn in Ireland.
The report also suggests that the illicit trade in Ireland “shows no signs of abating”, and cost the economy an estimated €1.48bn in 2013 alone.
This could rise to €1.58bn this year.
Click here to see a larger version. (Image Credit: Grant Thornton)
“Our research estimates that illicit trade in fuel and tobacco alone is as much as €337m, with much of this going into criminals’ pockets,” Report author and Grant Thornton Partner Brendan Foster said.
Money laundering allows these illegal proceeds to penetrate the legitimate financial system.
He also raises a warning about the use of virtual currencies to fund this.
“New threats such as the unregulated nature of payments with virtual currencies such as Bitcoin also pose new challenges to controlling what is a global problem,” he added.
Using data from the Irish Payment Service Organisation (IPSO), the report also highlights that while there was a fall in online payment fraud in Ireland in 2012, the exact cost to the economy of cybercrime is still hard to quantify.
Click here to see a larger version. (Image Credit: Grant Thornton)
It’s key findings in this area were:
The report also urges government to introduce reforms to protect intellectual property rights.
These are key to sectors such as entertainment and pharmaceutical sectors, with 23 per cent of employment located in these sectors contributing 50 per cent of our GDP, 13 per cent above the European average.
Click here to see a larger version. (Image Credit: Grant Thornton)
“Digital piracy of movies, production of counterfeit CDs, smuggling of illicit tobacco and alcohol are all examples of intellectual property (IP) abuse that hurt the Irish economy,” Foster said.
We recommend that a committee be established of both industry and state interests which would have direct responsibility for tackling the issue of illicit trade and IP protection.
The report also polled a number of consumers and retailers on illicit trade.
77 per cent said it was “easy to buy illegal tobacco”, with 72 per cent of retailers believing that the government’s response to illicit trade has been too little.
Last year, Revenue seized over 40 million illict cigarettes, 50 million less than 2012.
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Black market where things are free and a lot cheaper is not cool people. We must resist temptation and pay the full price for over taxed products. We must stop thinking of our selves and put the government and large multinationals first. Only then can our souls be pure and we will enter the Kingdom of God with a clear conscience.
Amen
Yes and we should profess our Love of the EU monitoring us More and all teenage girls should have angle merkel hairstyles , have to run phone is ringing,?
The biggest laundry is in Leinster house
75c on the Euro plus my fee of 17%. Just call Saul
Hahahaha..
if there wasnt a black market VAT would be 30% and a pint would be 10 Euros, stupid policies just end up being avoided or evaded.
Btw I dont see interest payments and bond repayments included, funny that being proceeds of criminal activity against the Irish people.
Irish police are investigating reports that a fruit company may be heavily involved with reports that boxes labelled apple filled with cash were seized on a plane at Dublin airport.
an easy way to cut a major part of these ‘losses’ to revenue would be to ‘STOP’ the agri/red diesel debacle, by introducing a tax rebate system for hauliers, farmers etc instead of the present system and thereby doing away with coloured diesel not only would it save revenue the loss incurred through illegal fuel laundering but it would also have an environmental impact , the damage caused by fuel laundering plants has a huge effect on the environment and the water table, let alone the cost to government in ‘cleaning up’ fuel laundering sites, garda time and overtime and court , prison costs for those who are caught and prosecuted. just pay for fuel at pump price ,get a receipt and lodge the receipts with your tax forms , rebate calculated on receipts instead of at the pump. win- win situation for revenue and government spending.
Ah thats a wojus bad idea how can I drive me car without the shot a green diesel??
The only problem you would have then is companies filing receipts for road vehicles diesel under plant/equipment diesel, prob still a save for the revenue tho!!
tachograph readings would put a stop to that Michael , produce them along side your diesel receipts to confirm mileage , if the receipts for fuel and the mileage on the tachograph don’t tally no refund. would also put a halt to drivers doing too many hours or miles.
Your actually saving the revenue money by giving the oul golf the shot It costs govt €680 million to dye the diesel all they recoup Is €300 million that’s what brains are coming out of university spend €680m to get €300m Is It any wonder were broke,
Is this not just Denis O’Briens money………sorry no proverbial detergent will clean that money!
As per usual, the government will simply deny it, quoting some unintelligible statistics to obfuscate the issue.
Simples!
:-))
The laundry service sounds like an excellent investment opportunity, probably the best since the angloirishbank lol.
When will the shares be floated
When will Grant Thornton be compiling a report into how much they and other accountancy firms help big companies avoid paying taxes? It’s reckoned that up to a trillion euros in taxes is lost per year all thanks to the expertise of these big firms. Blue collar crime didn’t bring the world economy to the brink in 2008 and all these big firms looking just as surprised as the rest of us, where was Grant Thornton or EY, PWC then?
Money is simply created out of thin air and is worthless paper. As for laundering, well who decides legal and illegal laundering?
Exactly. What does the government (mafia) do to deserve this cut (shakedown)? Peter sells Paul item X. John walks into the room declaring 20% of item is legally his entitlement. This is the sh*te small businesses up and down this country have to deal with, all because people don’t realise that “applying” for a business license in Ireland gives the government the equitable title of their business.
How much were they paid for this report ? The figures are guess work. The,differences between low & high is guess work.
The Irish Government must introduce legislation to ensure that all companies pay Corporation Tax at the rate of 12.5per cent of declared profits.
No other deductions should be granted!
Laundering services using Ireland must be outlawed!
Ireland needs to ensure that the 12.5per cent Corporation Tax is not diluted below 12.5per cent of declared profits. No other tax deductions should be granted!
Enda & Michael change the Law now!
It would be a bit easier if you had to register your non contractual phone with an id and address. You could track down all the number from the criminals. But this is Ireland. We don’t do things that make sense!!!
That’s a lot of dry cleaning.
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