Mattie McGrath (Tipperary South, Independent)
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Question 232: To ask the Minister for Finance if registered charities are to be expected to pay full VRT and VAT in purchasing vehicles or equipment specifically required to carry out their charitable work [36149/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that with regard to vehicle registration tax (VRT), Section 131 of the Finance Act 1992 requires that vehicles used by State residents must be registered in the State. However, there are a number of occasions where an exemption or relief from the payment of VRT tax may apply. One such relief in respect of VRT and VAT, subject to certain conditions, is provided for in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations. Statutory Instrument No. 353 of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations, 1994 (Regulation 12) sets out the medical criteria, certification procedures and repayment limits under this Scheme.

Representatives of charitable organisations may wish to examine the above Regulations in order to ascertain whether or not their organisation is eligible under this Scheme. In that regard, such representatives should contact Revenue's Central Repayments Office, M: TEK II Building, Armagh Road, Monaghan (Telephone 047 62100). The Deputy may also wish to note that comprehensive information relating to the Disabled Drivers and Disabled Passengers relief provisions is set out in an information leaflet entitled Drivers and Passengers with Disabilities – Tax Relief Scheme which is available in the VRT section on the Revenue website at www.revenue.ie

VAT is chargeable on most vehicles and equipment. Where a charity is engaged in economic activities and its turnover from these activities exceeds certain thresholds it must register for VAT. VAT-registered persons are entitled to claim credit for VAT charged on their inputs that relate to their economic activities, subject to some exceptions. A specific exception is that VAT-registered persons cannot claim the VAT charged to them on the purchase of a motor vehicle designed or constructed for the conveyance of 16 or less persons (inclusive of the driver) by road.

There is no general provision for relief for VAT charged to charities that are not registered for VAT. However, given the broad nature of the Deputy's query he may wish to give specific details to facilitate a detailed reply.

Michael Moynihan (Cork North West, Fianna Fail)
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Question 233: To ask the Minister for Finance if he will clarify the tax treatment of proceeds received by milk suppliers for shares allocated during a recent takeover bid (details supplied) [36155/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that they are not in a position to determine the appropriate tax treatment of the transactions referred to by the Deputy until the full facts and circumstances have been established and made available to them. If any of the milk suppliers involved wishes to obtain clarification of the matter, I suggest he or she arranges for full details of the transactions to be provided to the Revenue office dealing with his or her affairs and Revenue will endeavour to provide the necessary clarification as soon as possible.