In the rush to replenish tax coffers states will chase online business

IF a government levies a tax that is patently unfair or excessive then people may go to extraordinary lengths to try not to pay it, even running the risk of major fines or, worse, jail if caught and found guilty of wrong-doing.

The story of 46-year-old fruit and vegetable importer Paul Begley which commanded the headlines last weekend seems to illustrate the point perfectly. He has admitted that what he did was wrong when he labelled garlic imported from China as apples, to avoid paying excise duties of 232%. He has been jailed for six years, because of the belief of the Revenue Commissioners that this ongoing practice over 6 years effectively cost the State about €1.5m in lost revenues.

Many people have been shocked by the severity of the sentence, not least Begley and his family. They have argued that he cooperated with the investigation — although he may have little option once a customs officer opened a cargo to find 21 tonnes of garlic in a container that was supposed to have just two tonnes of garlic but 18 tonnes of apples. In a statement his company said: “It’s important to stress that what Paul did was wrong. It was a breach of EU regulations and he knows that. His family also knows that.” It also emphasised that his company, Begley Brothers, had agreed to repay the entire amount outstanding, including all the penalties, and had started to do so.