Cigarette smuggling has a European dimension now - they are much cheaper in the east.
Diesel washing and smuggling is a problem and is being run by ex IRA leaders.
But the illegitimate activities are a fraction of the legitimate business - I have four litres of northern Irish milk in my fridge (Aldi branded) - I can't imagine it will be easy or cheap to import the same into the European Union.
Tax is a tricky one - it could be a double edged sword for the UK.
Any thoughts about the people?
Do they matter?
First off, congratulations on being (if I have not scanned through too fast) the first
poster here to spot and properly raise a genuine issue that would arise from Brexit.
I have known about this complication for several months, but thought I would wait
until someone here pointed out which was not until page 47 of this thread.
(Needless to say the mpressive UK national Remain serf likes failed to raise it).
Second, I am the first to agree that there is a lot of hypocrisy. UK politicians are often
the first to criticise tax arrangements involving Ireland or Luxembourg, but very quick
to defend the similar arrangements with the Channel Islands and the Isle of Man.
For what it is worth I believe that such tax havens benefit only the accountants and the
wealth elite being of no value to John Bull public himself. They should be abolished.
There should in my opinion be a standard structure and rate of tax on corporation
profits/turnover within the UK and the local Crown dependencies OR in the event of
Remain, being successful, a standard rate of tax across the EU. If regional EU
governments (e.g. Scotland) wish to add a small increment that should be allowed.
There are no simple cost free solutions. Regarding Aldi milk, I thought you had plenty
of cows in Eire. If I recall correctly there was time when the now defunct UK milk
marketing board was paying Irish farmers more for milk than it paid UK farmers.
A brexited UK would not compel the EU to put an input tariff on milk from Northern
Ireland. I can think of many solutions varying from IRExit (raising my red flag here) to
Aldi programming their tills to apply a different rate of tax according to whether a UK or
Eire credit card is used to pay. In practice I suspect that the communities north and
south of the border would benefit by getting the best of both worlds. I understand
that this happens already near the Belgium-France border where shoppers nip across
to buy cheaper and similarly in the USA where local sales taxes vary by sate and for
some sates even by county. There was free movement of people between Eire and
the UK long before those countries joined the EEC. This would likely not change at all.
I rather think that this would only be a significant problem if significant goods or people
were to be smuggled to the UK from Eire via the border with Northern Ireland.