Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The Revenue Commissioners are responsible for the collection of the solid fuel carbon tax. This tax was introduced with effect from 1 May 2013 and will be collected on a self-assessed basis. In line with its approach generally, the Revenue Commissioners will apply the full range of compliance interventions and enforcement provisions for self-assessed taxes to the solid fuel carbon tax.

The tax is payable on the first supply in the State and will therefore be paid by importers and manufacturers at the earliest point possible in the domestic supply chain. Retailers that source their fuel from distributors in the State will not be making a first supply in the State and therefore will not be required to register for the tax. However, if a fuel trader or retailer receives some or all of its solid fuel supplies from a supplier based in another member state - for example, a supplier based in Northern Ireland - that fuel trader or retailer will be accountable for the tax when it supplies the fuel onwards to its own customers.

If a supplier based in Northern Ireland is supplying households here directly, that supplier will be making a first supply in the State and must register for the carbon tax and make payment of the tax on its supplies to the Revenue Commissioners. In circumstances in which there are grounds to believe that tax has not been paid in respect of a taxable supply of solid fuel, the Revenue Commissioners will investigate the person's tax liabilities in accordance with the particular circumstances of each case. If confirmed, it will enforce the collection of any unpaid carbon tax and other taxes, such as VAT.

A tax liability does not arise where an individual personally purchases and brings into the State solid fuel from a supplier in another member state, provided the fuel is for his or her own private use. However, should that individual, instead of using it him- or herself, supply another person in the State with that fuel, he or she will have made a first supply of solid fuel in the State as a supplier, will be liable to pay a solid fuel carbon tax on that supply, and must register with the Revenue Commissioners accordingly.

It is important to note that the solid fuel carbon tax will become operational in a market that is already subject to strict regulation. Regulations to enable local authorities to control the type of coal supplied in the State have been put in place as part of the robust mechanism introduced by the Minister for the Environment, Community and Local Government to address the risk of coal products with lower environmental standards, and on which carbon tax has not been paid, being sourced from Northern Ireland. Suppliers who are producing and supplying solid fuel unlawfully are subject to investigation and prosecution by local authorities and other State agencies charged with enforcing environmental regulations and preventing such supply. The Revenue Commissioners will liaise with these bodies as required to ensure lawful supplies of solid fuels are properly taxed.

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