Revenue targets cash for gold shops

Cash for gold shops are being targeted by Revenue to ensure that they are tax compliant.

Justice Minister Alan Shatter yesterday told the Dáil that the cash for gold sector was a current “focus” of Revenue.

“The Revenue Commissioners are focusing on the cash for gold sector with a view to assessing income tax and business tax liabilities.”

He was speaking during the debate on legislation brought forward by an independent TD, Mattie McGrath, to clamp down on the sale of stolen gold and scrap metals.

Mr Shatter rejected the proposed legislation, saying it was “earnest” but flawed.

“Whatever claims are made for it, it would not provide the gardaí with effective powers in this area,” he said.

“In practice, it would neither help the gardaí nor deter those involved in nefarious trading.”

The emergence of cash for gold outlets has led to fears of a spike in robberies from homes and stores.

Mr McGrath’s bill calls for gold and metal outlets to keep records of sales, which would include demanding that sellers provide photo ID and descriptions of items.

The Tipperary South TD said criminals would think twice before selling stolen goods knowing gardaí could trace the sale back to them.

The bill also calls for traders to hold items for 30 days before having them melted, to give gardaí time to trace stolen property.

However, Mr Shatter argued the legislation was lacking in several areas.

The minister said that legitimate organisations could be adversely affected.

He also pointed out that there was already pawnbroker legislation requiring traders to record sale details.

Figures released last November showed that burglaries had increased by 4% in the last year.

But Mr Shatter said there was no suggestion this was as a result of the increase in cash for gold trading.

“It should be said the Commissioner of An Garda Síochána has indicated no identifiable increase in crime as a result of the increase of cash for gold trading.”