Paul McGrath (Westmeath, Fine Gael)
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Question 316: To ask the Minister for Finance his views on allegations that the road haulage sector generally is operating in the black economy; the number of haulage companies registered with the Revenue Commissioners; the number of these that are tax compliant; the amount of arrears of tax and PRSI contributions outstanding in the sector; and if he will make a statement on the matter. [31815/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that there are approximately 5,000 road hauliers registered with them — this figure includes both companies and individuals.

Revenue have advised me that it is not possible, in the time available, to get detailed information on the amount of arrears of tax and PRSI contributions outstanding from cases in this sector. However, I am informed that during 2004, 198 Revenue audits were carried out on road hauliers resulting in additional tax, interest and penalties of €1.36 million being recovered from 73 of those cases, 125 audits were non-yielding. Also in 2004, Revenue detected 250 hauliers using marked gas oil and 26 hauliers using "laundered" diesel.

The Deputy will be aware that where a haulier is carrying goods for hire or reward, a road freight carrier's licence is required from the Department of Transport. In order to obtain or renew such a licence, evidence of compliance in the form of a tax clearance certificate must be produced to the Department of Transport. This tax clearance requirement helps considerably in improving compliance in this sector.

While the haulage sector poses some special tax compliance risks — as already indicated, these include the illegal use by some operators of laundered or marked diesel — I am advised that Revenue are vigorously pursuing non-compliance in this sector and remain alert to the emergence of any increasing risks.