Tag: black market

Number of illegal cigarettes in Ireland hits 10 year high as one in five packs smuggled in

The level of illegal cigarettes in Ireland was at its highest level in over a decade last year with almost 1 in 5 packs smuggled into the country, according to research by Revenue.

However, there is no evidence of any counterfeit tobacco products being sold to consumers in the Republic.

The latest annual survey commissioned by the tax authorities to assess the scale of illegal tobacco products being sold in the Republic found 19% of cigarette packs analysed last year were classified as illegal. It is the highest rate since the annual survey was introduced in 2009 and up from 17% the previous year.

Revenue has estimated the potential loss to the Exchequer from the consumption of 32.9 million illegal cigarette packs last year is approximately €422 million – up €38 million on 2022 estimates.

However, the survey found that none of the illegal packs detected last year were counterfeit cigarettes. The figure for counterfeit tobacco products had peaked at 7% in 2021.

The survey showed 99% of illegal packs analysed in 2023 were categorised as “contraband” – normal commercial brands of cigarettes which were bought either duty paid or duty-free abroad and smuggled into Ireland. The remaining 1% of illegal packs were “illicit whites” which are classified as cigarettes manufactured for the sole purpose of being sold illegally in another market.

The level of cigarettes brought into the country from abroad by smokers for personal use was also at its highest ever rate last year. The survey found 15% of cigarette packs were legal but without duty paid in Ireland which indicates they were legally purchased in another jurisdiction and brought into Ireland by the smoker.

The rate had been below 10% for most of the past decade. “The 2023 results suggest that the prevalence of both illegal and legal non-Irish duty paid packs has increased in recent years,” said Revenue.

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Utility company’s proposal to rat out hidden marijuana operations to police raises privacy concerns

Operators of illegal marijuana grow enterprises hidden inside rural homes in Maine don’t have to worry much about prying neighbors. But their staggering electric bills may give rise to a new snitch.

An electric utility made an unusual proposal to help law enforcement target these illicit operations, which are being investigated for ties to transnational crime. Critics, however, worry the move would violate customers’ privacy.

More than a dozen states that legalized marijuana have seen a spike in illegal marijuana grow operations that utilize massive amounts of electricity. And Maine’s Versant Power has been receiving subpoenas — sometimes for 50 locations at a time — from law enforcement, said Arrian Myrick-Stockdell, corporate counsel. It’d be far more efficient, he suggested to utility regulators, to flip the script and allow electric utilities to report their suspicions to law enforcement.

“Versant has a very high success rate in being able to identify these locations, but we have no ability to communicate with law enforcement proactively,” Myrick-Stockdell told commissioners.

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Trudeau’s Signature Pot Legalization Is Failing On All Fronts

Isaac Newton said he lost money on the South Sea Bubble financial collapse because, although he could track the movement of stars, he could not calculate the madness of men.

In Canada, the legalization of cannabis in October 2018, unleashed a mania that has seen nearly 1,000 companies receive federal production licences and retailers open nearly 3,500 stores selling cannabis products across the country. It is a short street indeed that doesn’t have a pot shop on it.

The Cannabis Act was a cornerstone piece of legislation for the Trudeau government — a welcome end to 94 years of failed prohibition and an attempt to make Canada safer by closing down the black market in unregulated pot.

It hasn’t quite worked out that way and now there are dire warnings that the onerous federal regulatory and tax regime is in danger of killing the nascent licensed production market.

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New York Dispensary Launches ‘Illegal Cannabis Buyback’ Program, Enticing Consumers To Transition To Legal Market With Discounts

A New York marijuana dispensary is taking steps to help eradicate illicit cannabis businesses that have proliferated in the state by offering discounts and benefits to people who transition to the legal market.

Housing Works, the parent company of the state’s first legal adult-use dispensary Housing Works Cannabis Co, announced the “illegal cannabis buyback” program on Thursday. As regulators continue their push to shut down unlicensed operators, the company is providing consumers with incentives to transition to the legal market.

From July 1 to September 1, any person who provides proof of membership at an illicit operator will get a free membership at Housing Works Cannabis Co’s “co-conspirator program,” which includes 25 percent off their first purchase and a 10 percent discount on all their purchases for the next year. The membership normally costs $25.

“This buyback initiative is crucial not only for the health and safety of our customers, which is always our top priority, but also for the legal business operators and those who have fought hard for a place in New York’s legal cannabis market,” Sasha Nutgent, director of retail at Housing Works Cannabis Co, told Marijuana Moment.

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UN Human Rights Experts Say Counties Should Legalize Drugs To ‘Eliminate Profits From Illegal Trafficking’

Dozens of United Nations (UN) human rights experts are championing a less-punitive approach to global drug policies, urging member nations to focus less on punishment and criminalization and more on harm reduction and public health while specifically calling for “decriminalisation of drug use and related activities, and the responsible regulation of all drugs to eliminate profits from illegal trafficking, criminality and violence.”

“The ‘war on drugs’ has resulted in a range of serious human rights violations, as documented by a number of UN human rights experts over the years,” says the statement from UN special rapporteurs, experts and working groups. “We collectively urge Member States and all UN entities to put evidence and communities at the centre of drug policies, by shifting from punishment towards support, and invest in the full array of evidence-based health interventions for people who use drugs, ranging from prevention to harm reduction, treatment and aftercare, emphasizing the need for a voluntary basis and in full respect of human rights norms and standards.”

The statement is not a defense of drug use but instead an insistence that nations’ overzealous fight against substances has failed to address health problems while creating harms of its own.

“These widespread abuses have included compulsory drug detention in the name of ‘treatment’, over incarceration and related prison overcrowding, the ongoing use of the death penalty for drug offences, killings, enforced disappearances and the ongoing lack of, and unequal access to treatment, harm reduction and essential medicines,” it says.

“The international community must seek to address and reverse the damage brought about by decades of a global ‘war on drugs,’” it says. “We note that states of exception and the militarization of law enforcement in the context of the ‘war on drugs’ continue to facilitate the commission of multiple and serious human rights violations… [W]e collectively call for an end to the militarisation of drug policy, overincarceration and prison overcrowding, the use of the death penalty for drug offences, and policies that disproportionately impact marginalised groups.”

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Florida Marijuana Legalization Campaign Releases New Statewide Ad Warning Of Dangers Of Unregulated Cannabis

The campaign behind a marijuana legalization ballot measure in Florida released a new ad in support of Amendment 3 this week, arguing that cannabis currently available on the state’s illicit market is dangerously unregulated.

“Most Florida marijuana is illegal, produced by criminals and can be laced with dangerous drugs like fentanyl,” a woman says, described in a campaign press release as “a Florida mom and voter who believes adult Floridians deserve the individual freedom to consume safe, tested adult-use marijuana.”

Titled “Fact,” the 30-second ad is set to air statewide “across broadcast, cable, streaming, radio and digital platforms,” according to the campaign, Smart & Safe Florida.

“Millions of Floridians use marijuana. It’s a fact,” it says. “Most Americans have access to legal marijuana that is regulated and tested for safety, but not Florida.”

Amendment 3, which will appear before voters in November, “gives adults access to legal, safe marijuana and the freedom to make their own choices while generating billions for schools and police,” it adds.

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Video Of NYC Cops’ Marijuana Raid Raises Questions About Mayor’s Enforcement Offensive

As a new mayoral task force conducts sweeps of hundreds of shops suspected of selling illegal weed, a video of a raid on a Staten Island store obtained by THE CITY captures how enlisting police to conduct regulatory inspections can lead to criminal charges, igniting concerns about potential due process violations.

The 90-second clip taken from a store surveillance camera on May 18 shows seven uniformed law enforcement officers, most of them in NYPD gear, cursing, jumping over the store counter and charging at a shopkeeper after he asked them for a court order before opening the door to the back of the store.

Instead, the man was cuffed—before any unlicensed cannabis products were found—and taken to a local precinct where he was charged with obstruction of justice, records show.

“When a cop tells you to do something, you fucking do it,” one officer told the shopkeeper.

The surveillance video was shared with THE CITY on the condition that the identity of the shopkeeper be protected. The arrest and criminal charge was confirmed by police records.

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Minnesota Marijuana Regulators Destroy Hundreds Of Thousands Of Dollars’ Worth Of Illegally Sold Hemp Flower

Since Minnesota began cracking down on the illegal sale of raw cannabis flower in many registered hemp retailers, its agents have confiscated a lot of product worth a fair amount of money.

According to numbers released by the Office of Cannabis Management (OCM), inspectors have confiscated and destroyed 12,094 units of flower—such as bags, jars or pre-rolled joints—with an estimated retail value of $278,000. The illegal products were taken from 58 different retail locations and amounted to nearly 73 pounds of raw cannabis flower.

While it has been legal to possess and use cannabis in Minnesota since last August, it is not yet legal to sell it and won’t be until sometime next spring. And while many hemp-derived low-potency products like gummies and beverages have been legal to sell since the summer of 2022, raw cannabis flower falls into a gray area. That is, if it has low THC content, it could be legal. But most of what has been sold exceeds the potency levels that separates hemp from marijuana.

If the confiscated products have likely been illegal under both the 2022 hemp-derived products law and the 2023 recreational cannabis law, why did it take this long for the state to crack down? Blame an inadvertent gap in the 2023 law that attempted to provide temporary state regulation of hemp products while the new Office of Cannabis Management was being set up.

The Office of Medical Cannabis was given temporary say over the two-year-old hemp-derived market but was not given control over raw flower, only products made from the plant like gummies and drinks.

That gap identified by regulators late last year allowed some stores to sell the flower that looks, smells and intoxicates like marijuana. At the same time, other retailers who wanted to follow the new law were left at a competitive disadvantage.

The raw flower was often sold as a hemp plant with high concentrations of THCA (tetrahydrocannabinolic acid). The same products are offered for sale from out-of-state businesses and mailed to customers where cannabis is not legal, or not yet legal as in Minnesota.

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After Virginia GOP Governor’s Marijuana Veto, Democratic Senators Say Legal Sales Likely Won’t Happen Until 2027 Or Later

Democratic senators in support of legal marijuana sales in Virginia said at a recent event that in light of Gov. Glenn Youngkin’s (R) veto of a retail cannabis bill last month, it will likely be 2027 or later before adult-use shops can legally open their doors.

“I’m very direct, and sometimes folks don’t like to hear the harsh truth, but it’s the harsh truth,” said Sen. Aaron Rouse (D), who sponsored the retail sales bill in the Senate. “There’s a really big mountain to climb with this governor and his administration. I think he will veto setting up an adult cannabis market regardless of what we send him.”

“By 2027, there will be a new governor in Virginia,” added Sen. Adam Ebbin (D), who sponsored marijuana sales legislation this session and in years past. “It’s possible that after the 2025 gubernatorial election, that someone will take office in January of 2026 who would sign an adult-use marketplace bill.”

“That means that, whether it was in 2027 or thereabouts,” Ebbin continued, “we could expect to see more a regulated market for non-medical use or adult use in Virginia.”

Use, possession and limited cultivation of cannabis by adults is already legal in the commonwealth, the result of a Democrat-led proposal sponsored by Ebbin that was approved by lawmakers in 2021. But Republicans, after winning control of the House and governor’s office later that year, subsequently blocked the required reenactment of a regulatory framework for retail sales.

This year, with Democrats in control of both legislative chambers, lawmakers passed a new legal sales bill, sending it to Youngkin for his consideration in late February. A month later, the governor vetoed the bill, writing in a veto message that “the proposed legalization of retail marijuana in the Commonwealth endangers Virginians’ health and safety.”

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Don’t Forget To Claim Drug Dealing Income on Your Taxes

As just about every American adult knows and is dreading, Monday, April 15, is Tax Day. Each year, taxpayers scrounge together each income statement the government requires and any random receipt that may result in a modest deduction in the amount they’re expected to pay.

The IRS wants taxpayers to know that if you made money from anything illegal last year—stealing, selling illegal drugs, taking bribes—then that’s taxable, too.

Last year, Americans spent 6.5 billion hours doing their taxes, which translates to roughly $260 billion in lost productivity. That’s in addition to the $104 billion they spent in direct costs on the actual tax filing and preparation.

Much of that complexity stems from the amount of deductions and carve-outs the tax law allows, as well as the types of revenue required to be treated as taxable income.

IRS Publication 17 “covers the general rules for filing a federal income tax return.” In its most current edition, the IRS advises, “Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity.”

In other words, even if you engage in activity that the federal government is completely opposed to, like selling heroin on the corner, Uncle Sam still expects you to kick up a percentage.

The IRS advisory also includes a section about “stolen property,” which similarly cautions, “If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year.”

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