From: Accounting Today
By Michael Cohn
A new report from the National Academy of Sciences explains how the U.S. is falling behind other nations, including Spain, the United Kingdom, Canada and the European Union, in combating illicit tobacco sales and tobacco tax abuse.
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The report found that federal tobacco enforcement is governed by a “complicated web of laws” with enforcement jurisdiction spread across four different agencies, including the Alcohol and Tobacco Tax and Trade Bureau in the Treasury Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives in the Justice Department, Immigration and Customs Enforcement and Customs and Border Protection in the Department of Homeland Security.
In addition, the report highlighted the challenges of coordinating the various agencies and jurisdictions, and found an overall lack of emphasis on tobacco enforcement among stakeholders. In one instance, the researchers found the number of tobacco investigations initiated by ATF declined from 100 in 2011 to just 11 in 2013. Meanwhile, illicit tobacco sales have nearly tripled over the past two decades.
