Joe McHugh (Donegal North East, Fine Gael)
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Question 67: To ask the Minister for Finance the reason a car owner's parents (details supplied) are disallowed from driving his car, which is legitimately registered by a citizen who lives in this State; and if he will make a statement on the matter. [45707/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that Section 134 (1)(a) of the Finance Act 1992 provides that a vehicle may be registered without the payment of vehicle registration tax (VRT), if the vehicle is "the personal property of a private individual and is being brought permanently into the State by the individual when he is transferring his normal residence from a place outside the State to a place in the State". However, specific conditions are attached to the use of such a vehicle for a defined period after it is brought into the State. These conditions are detailed in Statutory Instrument No. 59 of 1993 (Vehicle Registration Tax (Permanent Reliefs) Regulations, 1993). Regulation 4(6) of these Regulations requires that the vehicle be used solely by the registered owner for a period of 12 months from the date of registration in the State. It provides that: "A vehicle in respect of which the relief aforesaid has been granted shall not be sold or otherwise disposed of, hired out, lent or given as security in the State during the period of 12 months following its registration by the Commissioners...".

The vehicle that is the subject of this question was granted a permanent exemption from the payment of VRT in November 2010 under Section 134 (1)(a) of the Finance Act 1992. The exemption was granted to the registered owner of the vehicle and, accordingly, under the conditions detailed in Regulation 4(6) of Statutory Instrument No. 59 of 1993, the registered owner and he alone is permitted to drive the vehicle in the State until November 2011. The Revenue Commissioners have confirmed that the individual in question was advised in writing of the requirement regarding vehicle use, in a letter of exemption dated 8 November 2010, issued by their Border Midlands West Region, Donegal District, Letterkenny, Co. Donegal.

Finally, the Deputy may wish to note that where all qualifying conditions set out in S.I. No. 59 of 1993 are not complied with subsequent to the granting of an exemption, a payment of VRT equal to the amount remitted or repaid by the Commissioners at the date of registration will become due and is payable by the person in whose name the vehicle is registered.