Revenue catch shop selling illicit tobacco

A man whose family had an old style grocers shop said he was selling illicit tobacco and cigarettes because of competition from Lidl and Aldi.

Noel Kavanagh (50) of Thomas Street, Drogheda admitted the Revenue offences which took place on the 12th May 2016.

Dundalk circuit court heard that a Revenue officer did a test purchase at Kavanagh’s mini-market at Crushrod Avenue, Drogheda and asked the accused if he had tobacco.

He took a packet from behind the counter and charged the officer €12 for it.

At the same time other Revenue officials searched Mr Kavanagh’s home and when Mr Kavanagh, who was in the shop, heard this, he said, ‘I put my hands up for it.’

Judge Martina Baxter was told that none of the cigarettes or fine cut tobacco recovered had tax stamps on them and the charges were brought under section 78 (3) of the Finance Act.

The court heard that a search of his home found a quantity of tobacco in the kitchen area and a bedroom while under garden furniture Revenue found three black plastic sacks containing boxes of different brands of cigarettes.

In all 16,520 cigarettes and 11.19 kilos of tobacco were found in the house and 720 cigarettes and tobacco were found in the shop. The tobacco recovered was fine cut and produced to be used in hand rolled cigarettes.

In the shop the accused told the Revenue officer he was selling tobacco with duties not paid on it, ‘ to compete with Lidl and Aldi,’ and he had purchased the items off a person in Dundalk.

He knew they were illicit, Mr Kevin Segrave, prosecuting said.

The loss to the exchequer in unpaid excise and VAT from the items in the house was over €10,000.

He has one previous conviction for a similar offence dating from 2013.

The court heard his father, who was ill at the time, has since died and the shop has been left in trust to the accused mother and sister and has been leased out.

Defence barrister Seamus Clarke said it had been an ‘old style family grocery shop,’ and had to compete with big business.

Mr Kavanagh had co-operated with the investigation and is now on disability benefit.

He helps with homeless charities in Drogheda and Newry and attends Beaumont hospital for a medical condition. He was treated for leukaemia in 2004.

Judge Baxter remanded him in custody to the court sitting on the 13th November when she will pass sentence.