Ciarán Lynch (Cork South Central, Labour)
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Question 190: To ask the Tánaiste and Minister for Finance further to Parliamentary Question No. 150 of 12 February 2008, the measures in place to track the temporary importation of vehicles; when a person, previously established outside the State, is considered to be established here; and if he will make a statement on the matter. [11796/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that Section 135 (a) of the Finance Act 1992 permits a European or other foreign registered vehicle which is temporarily brought into the State by a person established outside the State to be exempted from the requirement to register for vehicle registration tax purposes for a period normally not exceeding 12 months from the date upon which the vehicle concerned was brought into the State. Temporary exemptions are allowable for vehicles brought into in the State by visitors, tourists and foreign workers.

Statutory Instrument No. 60 of 1993 prescribes the criteria for eligibility for the granting of temporary exemption from the requirement to be registered for VRT purposes in the State.

There is no requirement for vehicles imported under temporary exemption provisions to be presented to the Revenue Commissioners to avail of the relief. Details of these vehicles are therefore not captured by Revenue or held in the vehicle registration system. When a vehicle fails to meet the conditions for temporary exemption, e.g. the temporary status no longer applies, the onus is on the person availing of the exemption to remove the vehicle from the State or present it for registration.

As part of their enforcement activity, Revenue mobile units and the Garda Siochana monitor Irish and foreign registered vehicles on our roads and examine documents relating to ownership, registration and the importation of foreign registered vehicles to ensure that they are still eligible for temporary exemption from registration. The documentation must be kept with the vehicle when it is in use in the State and be made available to Revenue officials when requested.

In 2007, Revenue mobile units challenged and investigated 15,417 vehicles in the State. Of these, 10,325 satisfied Revenue officials that the registration status was in order at that particular time and no further action was necessary. 2,313 vehicles were registered for VRT purposes as a direct consequence of these investigations. Enforcement activity also resulted in prosecutions, seizures, exportation and scrappage of vehicles and indeed in the granting of temporary or permanent exemptions depending on the circumstances of the case.

A person, previously established outside the State, who avails of a temporary exemption, may decide to set up permanent residence here. An application for permanent relief from VRT should then be made to Revenue. Where the application is successful, the person will register the vehicle free of VRT.

In this regard, Section 134 of the Finance Act 1992 provides for permanent relief from the payment of VRT on the registration of a vehicle which is the personal property of a private individual being brought into the State as part of transfer of residence. (Permanent reliefs are also available in other cases, e.g. for vehicles acquired as part of an inheritance or for vehicles transferred into the State under diplomatic arrangements).

Statutory Instrument No. 59 of 1993 sets out the conditions governing the registration of vehicles under the above section.