February 17, 2011
By Staff Reporter
Unprecedented numbers are taking trans-Atlantic flights to buy holiday gifts for family and friends. Cheaper air ticket prices on more flights, high Irish sales taxes and the strong euro have combined to generate an Irish shopping frenzy in New York, Boston and Chicago.
With more than 60 flights a week direct from Ireland, and more coming via other countries such as England, France, Holland and Germany, an estimated 100,000 people will hit the stores.
Accommodation — from Irish-owned hotels to relatives’ sofabeds — is at a premium.
But the tax authorities in Dublin last night warned Irish Echo readers they face heavy penalties if they are caught not declaring their purchases when they get back.
“We’re certainly not looking to spoil anyone’s Christmas shopping trip,” a spokesman for the Revenue Commissioners said, “but anybody who thinks that we would simply turn a blind eye is very much mistaken.”
Under the rules, adult travelers are allowed around $200 worth of clothes and gifts, while children are permitted a smaller amount. Above this, shoppers must pay duty ranging from 3 to 20 percent, then 21 percent tax on the total.
Such payments would seriously erode any savings made from shopping stateside. For example, a camcorder that cost $400 would attract duty of $56 and tax of $96, bringing the real cost to $552.
The Revenue Commissioners said they would be stopping “at least one person” on every return flight. Those caught must pay double the tax and duty.