Róisín Shortall (Dublin North West, Labour)
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Question 100: To ask the Minister for Finance the appeals process for a person who is charged back tax on the basis that a social welfare payment was not taken into account in calculating income tax liability in previous tax years by the Revenue Commissioners; the procedures in place to reduce the rate of annual repayment to a more manageable level; if he will provide a contact number other than 1890 33 34 25, from which it is proving impossible to receive a reply, for persons (details supplied) in Dublin 15 to contact the Revenue Commissioner to discuss their case; and if he will make a statement on the matter. [3164/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I have been advised by the Revenue Commissioners that on 20 September 2006 the taxpayer in question requested balancing statements for the years 2002 to 2005. Following a review of his liability a total underpayment of €4,906.67 arose. The underpayment arose due to the fact that his spouse was in receipt of invalidity pension during the above years, which had previously been untaxed.

The Revenue officer dealing with the case proposed to collect the underpayment by reducing the taxpayer's tax credits over a six-year period commencing 1 January 2008. However if the taxpayer wishes to have the underpayment collected over an extended period he may contact Ms. Ann Doran, Fingal Revenue District, Block D, Ashtowngate, Dublin 15, phone number 01 — 8277043.

If the matter cannot be resolved by agreement, section 948 of the Taxes Consolidation Act 1997 provides for the right of appeal and, again, the appeal should be submitted to the Revenue District named above. Following receipt of Notices of Assessments for the years 2002-2005 the formal appeal should be lodged within 30 days.

Joan Burton (Dublin West, Labour)
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Question 101: To ask the Minister for Finance the capital allowances allocated to the Beacon Hospital development for each of the past five years; and if he will make a statement on the matter. [3187/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Deputy will be aware that for reasons of taxpayer confidentiality the Revenue Commissioners would not divulge information regarding the tax affairs of individual taxpayers (including companies).

Dan Boyle (Cork South Central, Green Party)
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Question 102: To ask the Minister for Finance the reason VAT registered individuals purchasing high fuel emission commercial vehicles (details supplied) receive a full VAT refund and therefore only pay the nominal VRT fee despite the increased pollution caused by such vehicles; and if he will address this issue in the context of planned changes in environmental taxation as announced in Budget 2007. [3202/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that VAT deductibility is allowed in the case of motor vehicles that are classed as Category B or C for VRT purposes but not for Category A vehicles (cars). Category B vehicles would typically include what are commonly called "crew cabs" or commercial jeeps while Category C vehicles would include vans and lorries. VAT deductibility is allowed in the case of Category B or C vehicles as these are regarded as being designed and constructed for the transport of goods, plant, equipment, etc. Under EU VAT law, with which Irish VAT law must comply, there is no restriction of entitlement to VAT deductibility by reference to the fuel-efficiency, emissions or other environmental characteristics of any vehicle or class of vehicle.

As regards VRT, commercial vehicles are subject to a much lower rate of VRT than that which applies to private cars (Category A vehicles). Category B vehicles are subject to VRT amounting to 13.3% of the open market selling price while a flat rate of €50 applies to Category C vehicles.

The public consultation process announced in the Budget, with respect to future changes in VRT and motor tax to take account of emission levels, relates solely to private cars. I have not ruled out making future changes to VRT rates applying to Category B and Category C vehicles, however, we need to examine the competitiveness issues that arise from making any such changes. Increasing the costs associated with transporting goods, or the carrying of necessary tools and equipment required to undertake labour intensive services, essentially leads to higher prices for consumers. Notwithstanding this, if changes can be made that have clear environmental benefits without impacting greatly on costs, these will be given appropriate consideration.