Jack Wall (Kildare South, Labour)
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Question 53: To ask the Tánaiste and Minister for Finance the guidelines that determine seized vehicles not complying with his Department's road tax directives (details supplied); and if he will make a statement on the matter. [22197/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Vehicle Registration Tax is chargeable on registration of a motor vehicle in the State. All motor vehicles in the State, other than those brought in temporarily by visitors, must be registered with the Revenue Commissioners. A vehicle must be registered before it can be licensed for road tax purposes. The Revenue Commissioners charge vehicle registration tax (VRT) on the open market selling price (OMSP) of vehicles on registration. OMSP is defined in Section 133 of the Finance Act 1992; and is the price, inclusive of all taxes and duties, which a vehicle may reasonably be expected to fetch on a first arm's length sale in the open market in the State by retail. The OMSP of new vehicles is declared to the Revenue Commissioners by a wholesale distributor, while the OMSP of imported second hand vehicles is determined by the Revenue Commissioners based on factors such as age, mileage and vehicle condition.

When a vehicle is brought into Ireland from abroad, it must be registered and the VRT paid by the end of the next working day following its arrival in the State. Where a vehicle remains unregistered for a period in excess of one week of its arrival in the State, Section 140 of the Finance Act 2001 provides for the vehicle to be detained by Revenue mobile units for such period as is required to carry out their enquiries regarding the VRT status of the vehicle. Generally one of the following options will be available to the owner of the vehicle in such circumstances:

(a)The Vehicle should be presented for registration at a Vehicle Registration Office where VRT is payable on the open market selling price of the vehicle in the State.

(b)Where applicable, an application for an exemption from the payment of VRT should be made.

(c)The Vehicle may be exported out of the State.

Section 139 of the Finance Act 1992 provides for offences and penalties under VRT law. A person guilty of an offence under this section will be liable to a penalty of €1,265, in addition to the VRT payable on registration. Under certain circumstances, a person may be exempted from having to pay VRT. Sections 134 and 135 of the Finance Act 1992 provide for permanent and temporary exemptions from the payment of VRT on registration of vehicles in the State. Such exemptions include transfers of residence, vehicles acquired on inheritance, vehicles transferred into the State under diplomatic arrangements and vehicles used in the State by visitors and tourists.

Section 134(1)(a) of the Finance Act 1992 provides for the granting of a permanent exemption from the payment of VRT on registration where a vehicle is the personal property of a private individual and is being brought permanently into the State on the transfer of their normal residence from a place outside the State to a place in the State. Statutory Instrument No. 59 of 1993 sets out the conditions governing the registration of vehicles under that section. An application for exemption under transfer of residence provisions should be made within one week of the arrival of the vehicle in the State. The Deputy may wish to note that guidelines relating to eligibility for exemption are contained in information leaflet VRT 3 in the VRT section of the Revenue website www.revenue.ie and also at any Vehicle Registration Office.