Written answers

Tuesday, 23 February 2010

Department of Finance

Departmental Correspondence

9:00 pm

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

Question 163: To ask the Minister for Finance if he will respond to correspondence (details supplied); and if he will make a statement on the matter. [8727/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

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.

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.

As the Deputy may be aware, Section 106 of Finance Bill 2010 provides for the introduction of a requirement for a return of information, in a specified format, to be made to the Revenue Commissioners by a vehicle insurer who issues a policy of insurance in relation to a foreign registered vehicle for a period in excess of 42 days.

This provision will enable Revenue enforcement officers to identify foreign registered vehicles which may be used in the State without the payment of vehicle registration tax. It further allows Revenue to ascertain the date that a foreign registered vehicle first entered the State so that, in cases of future detection, an additional assessment can be raised to cover the time that the vehicle was in the State without the payment of vehicle registration tax.

The insurance liabilities for foreign cars are the same as for cars registered and being used in Ireland. Any policy of motor insurance acquired in any Member State of the European Union is valid for the whole of its term throughout the EU. Vehicles from outside the European Union must either have a Green Card, whereby the Motor Insurers' Bureau system will guarantee any liability which may arise, or must possess Frontier Insurance if the vehicle originates in a country which is not part of the international Motor Insurance Bureau system. Enforcement is a matter for An Garda Síochána, as is non-compliance with the NCT Test.

Comments

No comments

Log in or join to post a public comment.