John Gormley (Dublin South East, Green Party)

There has been no change to the system of motor taxation in respect of goods vehicles. Accordingly, I am not aware of any negative impact on small businesses due to the continued implementation of existing motor tax legislation.

My Department issued a circular letter to motor tax offices in August 2010 reminding authorised officers of existing provisions with regard to the taxation of vehicles on a goods basis. This circular reiterated the terms of a 2005 circular letter. To be taxed as a goods vehicle, a vehicle must be constructed or adapted for that purpose and used solely in the course of trade or business. If a vehicle is adapted, it must have the same characteristics as a goods vehicle in respect of space and accommodation for carrying goods and it must have limited seating capacity. In effect, this means that in order to be taxed in the goods category, the goods-carrying area of the vehicle must be greater than the seating area; all seats to the rear of the driver's seat must be removed and seat bolt holes welded over and all rear seat belts must be removed and seat belt anchor points welded over.

Under Section 2 of the Finance (Excise Duties) (Vehicles) Act 1952, if a vehicle is used in a condition or manner which would attract motor tax at a higher rate, tax then becomes payable at that rate. In other words, if a goods vehicle is used in a private capacity, it must, like all other private vehicles, be taxed at the private rate of motor tax.

Under Article 3 of the Road Vehicles (Registration and Licensing) (Amendment) Regulations 1992, a licensing authority must be satisfied that a vehicle is correctly taxed, and it is thus open to a motor tax office to seek additional documentation supporting a claim for the goods rate of motor tax. Such documentation may include a certificate of commercial insurance or evidence of registration for VAT purposes, or, at the discretion of the licensing authority concerned, any other appropriate document. In circumstances where an RF111A Goods Only Declaration is required, an income tax registration number is now routinely sought. I would not expect that any person genuinely using a vehicle in the course of trade or business should have a difficulty supplying documentation to support a claim for what is, in effect, a concessionary rate of motor tax.

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