James Bannon (Longford-Westmeath, Fine Gael)
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Question 71: To ask the Minister for Finance the steps he is taking in relation to UK and Northern Ireland registered vehicles being driven on roads here with no VRT or road tax, exempting them from incurring parking fines, speeding fines or penalty points and which are being imported by known dealers who do not possess a correct TAN number and are not subject to VAT or tax payments, with such trade being to the detriment of the native legitimate motor industry; and if he will make a statement on the matter. [13858/09]

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 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 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 VRT purposes for a period normally not exceeding 12 months from the date upon which the vehicle concerned was brought into the State. Statutory Instrument No. 60 of 1993 prescribes the criteria for eligibility for the granting of temporary exemption on registration. These provisions are in line with Article 39 of the EU Treaty, which provides for the free movement of people within the EU, and a reciprocal arrangement is also in place for our own State residents in fellow Member States.

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. Additionally, regular national blitzes (i.e. short periods of concentrated activity involving numerous extra checkpoints, co-ordinated across the country, targeting evasion of VRT, VAT and the use of unmarked mineral oil) take place. Such a blitz is now underway and featured prominently in the news bulletins on Sunday last, 29 March 2009.

For their part, Revenue mobile units challenged 20,669 vehicles in 2008. Of these some 15,321 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 in excess of €1.1 million were imposed in respect of these vehicles.

In 2008, 55,819 used passenger vehicles were registered and the total VRT paid thereon amounted to €190 million, while there were 28,727 used commercial vehicles registered and the total VRT paid thereon amounted to €6.8 million. There is some evasion of VRT, with individuals delaying registration as long as possible. The Deputy will be aware that legislative provisions in the recently enacted Finance (No.2) Act 2008 (Sections 62 and 64 refer) tighten up the rules in relation to the registration of second hand vehicles and the late payment of VRT. Section 62, in particular, allows the Revenue Commissioners to raise an estimated assessment of additional VRT in situations where the tax has not been paid within the prescribed period.

In relation to the registration of second hand vehicles by dealers who are either not TAN (Trader Account Number) holders or who are abusing their authorised status, Revenue officials are constantly monitoring potential evasion of VRT and VAT. I am advised by the Revenue Commissioners that new measures to cancel an authorisation to hold unregistered vehicles introduced since the 2008 Finance Act are being implemented in specific cases of abuse of the authorised dealer status.

I am conscious that VRT evasion can lead to distortion of competition. The measures I have introduced in the Finance (No.2) Act 2008 are part of the response. Ongoing enforcement activity by the various agencies within the sector — the Road Safety Authority, the Garda, the local authorities and Revenue — ensure compliance with all aspects of traffic management of the national vehicle fleet. Indeed, it should be borne in mind that the right to import a vehicle, register it and pay the appropriate taxation on time is protected and honoured by the majority of those who source their vehicles abroad. Notwithstanding this, I believe the measures introduced in the Act will improve the regulatory framework for all in this area.

If the Deputy has any specific information relating to any potential abuses of VRT or VAT legislation and regulations in the State, details may be forwarded on a confidential basis to the Case Management and Enforcement Units in any Revenue District. Revenue's enforcement officials will act upon any such information received. Finally, matters relating to road tax are within the remit of the Minister for the Environment, Heritage and Local Government and matters relating to parking fines, speeding fines and penalty points are within the remit of the Minister for Justice, Equality and Law Reform and the Garda Síochána.