Richard Bruton (Dublin North Central, Fine Gael)
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Question 202: To ask the Minister for Finance the criteria used for deciding whether non-PAYE income would cause a person to be regarded as self-assessed and therefore not eligible for designating tax relief on charitable donations to the charity and no longer eligible to use the Revenue Commissioners' on-line PAYE service; and his views on relaxing these criteria. [23039/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Finance Act 2005 amended the definition of "chargeable person" for tax purposes and subsequently the Revenue Commissioners published the criteria used by them for deciding whether a person is to be regarded as subject to the rules of the self assessed system of taxation. These criteria were set out in Tax Briefing 62 dated December 2005 which is available from the Revenue website www.revenue.ie.

In summary, the position is that an individual with PAYE income is not regarded as a chargeable person where:

he/she has less than €50,000 gross income from non-PAYE sources (excluding social welfare payments),

the net assessable non-PAYE income, i.e. income after deductions, allowances and reliefs, is less than €3,174, and

the income is coded in his/her tax credit certificate against PAYE income, thereby enabling the person's complete income tax position to be managed within the PAYE system.

Where these criteria are not met, the person is a "chargeable person" and must make a tax return under the self-assessment system.

It is important to point out that self-assessed taxpayers are not prevented from availing of tax relief on charitable donations — they simply avail of the relief in a different manner — i.e. by taking a deduction on their tax return of the qualifying amount, which must be more than €250. Similarly, while chargeable persons may not use Revenue's PAYE Online Service, they may, of course, use the Revenue Online Service (ROS) for self-assessed taxpayers.

The different approaches are due to the inherent differences in the way employment income and other income is taxed. All income is reportable to Revenue, but the criteria are designed so as to enable PAYE taxpayers who have modest non-PAYE income to have their tax managed and paid through the PAYE system, rather than having to meet the filing obligations of self-assessment. The criteria seem to me to strike a reasonable balance in this regard.

Fergus O'Dowd (Louth, Fine Gael)
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Question 203: To ask the Minister for Finance if licensed publicans can claim back VRT on vehicles used for business purposes; if so, the number of licensed publicans in the latest year for which figures are available that took advantage of same for the express purpose of ferrying customers to and from their licensed premises; and if he will make a statement on the matter. [23045/08]

Fergus O'Dowd (Louth, Fine Gael)
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Question 204: To ask the Minister for Finance if publicans would be entitled to an exemption on paying VAT on the capital purchase of vehicles for business purposes of transporting customers; and if he will make a statement on the matter. [23079/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 203 and 204 together.

I am advised by the Revenue Commissioners that there is no provision in vehicle registration tax (VRT) legislation that permits licensed publicans to claim back VRT on vehicles used for business purposes.

With regard to the VAT treatment of the purchase of vehicles by publicans for the purposes of transporting customers, there is a general restriction on VAT deductibility in respect of motor vehicles. Generally, deductibility is only allowed for vehicles which are acquired as stock-in-trade (that is, for resale) or for use in a vehicle hire business or for use in a driving school business.