Jack Wall (Kildare South, Labour)
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Question 307: To ask the Minister for Finance the background of the removal of charitable status of a group (details supplied) in County Kildare; and if he will make a statement on the matter. [9927/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that the group as specifically named by the Deputy never held charitable tax exemption. However, a body with an almost identical name, which it is assumed is the intended subject of the Deputy's question, applied for charitable tax exemption in 1993 and 2001. On the first occasion, the application was refused on the basis that the body concerned had not been established for exclusively charitable purposes, as required by the legislation. On the second occasion the necessary documentation to enable the Revenue Commissioners finalise consideration of the application was not provided despite their request for such documentation.

John Curran (Dublin Mid West, Fianna Fail)
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Question 308: To ask the Minister for Finance if he proposes to introduce a grant or aVAT reduction to people having their cars modified to enable them to use low CO2 emission biofuels; if a VAT reduction on these biofuels is planned to encourage greater use of these fuels. [9969/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I wish to advise the Deputy that there are no grants or financial incentives available for adapting diesel cars in order that they can use biofuels. In relation to VAT, the position is that the VAT regime and indeed the rating of all goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. While we can retain the zero rating provisions which were in existence on 1 January 1991, we cannot introduce any new ones. Therefore, it is not possible to apply a zero rate to the supply of goods used to modify cars to use low carbon dioxide emission biofuels.

In addition, while a reduced rate can be applied to certain goods and services, there is no mechanism which would allow for the reduced rating of alternative fuel consumption systems for cars. The VAT Directive does not make any distinction between different types of fuels or methods of production of energy. The supply of all fuel consumption systems, including environmentally friendly ones, is therefore chargeable at the standard VAT rate of 21%. Any change in the standard rate would apply to the sale of all fuel consumption systems and indeed products at the standard VAT rate. A reduction in the standard VAT of 1% would cost the Exchequer in excess of €440 million and have little or no effect on price.

However, under the VAT system, VAT registered businesses can claim a deduction for all other types of fuel e.g. diesel, LPG or bio-fuels except petrol. In addition, the conversion of a vehicle is allowable as a deduction provided the conversion is an expense suffered in the course or furtherance of business and used for a taxable activity.

The Deputy will also be aware, I introduced a provision in the Finance Act of 2006 which enables the Revenue Commissioners to grant a 50% vehicle registration tax (VRT) relief on the registration of flexible fuel vehicles (FFVs) in the State. The purpose of this scheme is to encourage the development of new technology that is used in the manufacture of vehicles that use engines and fuel systems that are capable of running on E85-bioethanol (a combination of ethanol and petrol) which benefits the environment by producing lower pollutant emissions than conventional vehicles fuelled exclusively by petrol or diesel.

Jack Wall (Kildare South, Labour)
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Question 309: To ask the Minister for Finance the reasons a person (details supplied) in County Kildare has not received their P21 tax certificate as they need it for an application for a shared ownership application; and if he will make a statement on the matter. [10007/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I have been advised by the Revenue Commissioners that a PAYE Balancing Statement Form P21 issued to the taxpayer on 5 March 2007.