Fergus O'Dowd (Louth, Fine Gael)

I thank the Deputies for raising the matter and I will bring the points made to the attention of the Minister, Deputy Phil Hogan. The position regarding the taxation of goods vehicles has not changed. In August 2010, the Department of the Environment, Heritage and Local Government issued a circular to motor tax offices reminding authorised officers of existing provisions with regard to the taxation of vehicles on a goods basis. This circular reiterated the terms of an earlier 2005 circular.

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. The Deputies are raising issues where such a vehicle is used in the course of ordinary family life, such as in going to mass or picking up the newspaper on the way to work. These are normal social interactions as people drive their vehicles. The points made at that time have validity: why should a farmer not stop off at a shop to get a newspaper, just as anybody else does?

If a vehicle is adapted, it must have the same characteristics as a goods vehicle with regard to space and accommodation for carrying goods. The vehicle must also be used in the course of trade or business. 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 at any time in a private capacity, it must be taxed at the private rate of motor tax. The key point is that common sense must apply.

Under Article 3 of the Road Vehicles (Registration and Licensing) (Amendment) Regulations 1992, a licensing authority must be satisfied that it is authorised to issue the licence applied for and, accordingly, that it is the appropriate licence for the vehicle. It is thus open to a motor tax office to seek documentation to support an application. Such documentation could include, but is not limited to, a certificate of commercial insurance, evidence of registration for VAT or a tax clearance certificate, or any other document that would assist in satisfying the licensing authority as to the basis for the application. I do not think that, as the Deputy said, having to present a tax clearance certificate constitutes red tape. That is an important point. If a vehicle is used for commercial purposes, the user should have a tax clearance certificate, just as you and I need tax clearance certificates to sit in this Dáil. It would not be expected that any person genuinely using a vehicle in the course of trade or business would have difficulty in providing such documentary evidence if requested to do so.

The goods declaration form RF 111A, which has been in existence for a number of years and is not a new requirement, constitutes a statement by the applicant that the vehicle is being used in the course of trade or business. This declaration should not need to be sought at every renewal if the particulars of the vehicle have not changed, but it is normally sought at the time of first taxing as a goods vehicle and on change of ownership. The only minor amendment to this form is that the income tax registration number of the applicant is now requested, which is also perfectly reasonable.

I reiterate that the legal provisions governing the taxation of goods vehicles have not changed. However, evidence was brought to the Department's attention that high-powered, high-specification vehicles that would not normally fall into the goods vehicle category are increasingly being claimed as goods vehicles. In that regard, it is important that motor tax offices follow the requirements to ensure a vehicle is taxed properly. If a concessionary rate of tax is being claimed in circumstances in which it is not warranted, the concomitant loss of income would in the normal course of events have to be recouped elsewhere. All road users should pay their fair share of motor tax in line with the relevant legal provisions. The Minister, Deputy Hogan, intends to review the taxation classes currently in place for motor vehicles. As I said at the beginning, I will bring the Deputies' views to the attention of the Department for direct response.

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