Richard Bruton (Dublin North Central, Fine Gael)
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Question 112: To ask the Minister for Finance if his attention has been drawn to the National Roads Authority estimates that 3.5% of the cars in Dublin are foreign registered; the steps he will take to ensure that these cars are registered, and therefore taxed; and if he will make a statement on the matter. [8342/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that as a general rule all vehicles imported permanently into the State must register for Vehicle Registration Tax (VRT) purposes within one working day of arrival. This rule applies equally to vehicles imported by EU and non EU persons. In practice, Revenue allows latitude of a maximum of seven days for registration.

However, Section 135 (a) of the Finance Act 1992 permitted a European or other foreign-registered vehicle which was temporarily brought into the State by a person established outside the State, to be exempted from the requirement to register for VRT purposes for a period normally not exceeding 12 months from the date upon which the vehicle concerned was brought into the State.

Section 64 of the Finance (No.2) Act 2008 amends this section to provide for the registration (without the payment of VRT) of vehicles temporarily brought into the State for a period greater than 42 days.

When the new temporary registration system comes into effect, the vehicle owner will be required to register with Revenue and receive a temporary number plate, which will have to be displayed on the vehicle. This will provide a mechanism whereby Revenue can maintain a record of vehicles benefiting from this exemption, quickly identify applicants who are not eligible for a temporary exemption and must immediately pay any VRT due; and identify vehicles coming to the end of a period of temporary exemption (i.e. one year), so that VRT can be collected when it becomes due. In addition the amendment provides that vehicles seeking temporary registration will be required to undergo a pre-registration test as a pre-condition for registration.

The Deputy may wish to note that Revenue mobile units and An Garda Síochána continue to monitor both Irish and foreign-registered vehicles on our roads as part of their regular and ongoing enforcement activity. For their part, Revenue mobile units challenged 20,669 vehicles last year. Of these, some 15,231 satisfied Revenue officials that the registration status was in order at that particular time and no further action was taken. 5,438 vehicles required further investigation and action including registration and payment of VRT, seizure of vehicle, export of vehicle, grant of transfer of residence relief or temporary exemption, and reports for prosecution. In addition to the VRT collected, penalties totalling €1,109,315 were imposed in respect of these vehicles. In 2008, some 55,000 second hand vehicles were registered and the total VRT paid amounted to €190m.