Richard Bruton (Dublin North Central, Fine Gael)
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Question 143: To ask the Minister for Finance if he has taken steps to ensure that VAT numbers are not being used illegally in Northern Ireland by persons who are not authorised; and if he will make a statement on the matter. [21348/09

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that the intra-Community movement of goods between Member States is subject to a system of control whereby details of goods that have been zero VAT rated in the Member State of supply are notified to the authorities of the Member State of destination through the VAT Information Exchange System (VIES). This enables the authorities of the Member State of destination to ensure that VAT is accounted for. Furthermore, the supplier is obliged to confirm that the customer from the other Member State is registered for VAT and that the goods are removed from the Member State of supply. Otherwise the supplier is liable for payment of the VAT involved. The validity of the VAT registration number can be checked by the supplier via an online Europa website set up for this purpose.

In order to tackle intra-Community VAT fraud, the European Commission has enacted legislation (Council Regulation 1798/2003) governing administrative co-operation in the field of Value Added Tax with a view to combating cross-border VAT fraud. This legislation is used extensively by the Revenue authorities on both sides of the border who actively exchange information and provide mutual assistance with a view to detecting discrepancies or irregular transactions. Special programmes have been set up precisely for this purpose. The frauds detected to date include the use of hijacked, missing trader, and ceased VAT numbers. The penalties for non-compliance include the raising of VAT assessments against the supplier, the seizure of the goods involved and the prosecution of offenders.

James Bannon (Longford-Westmeath, Fine Gael)
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Question 144: To ask the Minister for Finance his views on whether it makes economic sense to deprive homeowners of mortgage tax relief after seven years, impose tax increases and levies; and if he will make a statement on the matter. [21431/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As I said in my Supplementary Budget 2009 speech, the most urgent step required to restore and renew our economy is to stabilise our public finances. This, I believe, is crucial to the recovery of confidence among investors, consumers and businesses. In this context, as announced in my Supplementary Budget 2009 speech, the income and health levies were doubled and the thresholds reduced from 1 May 2009.

I believe that in these times of scarce resources support should be targeted at those most in need. Mortgage interest relief has therefore been limited to the first seven years of a mortgage from 1 May 2009. The relief is now targeted at those who bought their home when prices were at their peak while also supporting those who wish to move, improve or buy for the first time.

I understand that the Department of Social and Family Affairs provides a payment known as the Mortgage Interest Supplement for mortgage holders who have found themselves out of work or on reduced hours. Queries in relation to this payment should be directed to the Minister for Social and Family Affairs.