Written answers

Thursday, 14 October 2010

Department of Finance

Vehicle Registration

5:00 pm

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Question 60: To ask the Minister for Finance in relation to the registration of vehicles, if his attention has been drawn to the fact that since the transfer of this function from the Revenue Commissioners, garage owners in County Wexford have to wait up to one week for an appointment, often must travel considerable distances within the county or even to Dublin for an appointment as most national car test centres in the county open only three days per week; his views on whether this represents a diminution in service compared with the previous arrangement where registration by the Revenue Commissioners was completed if not the same day then within one or two days; the steps that are being taken to remedy this situation which is further damaging the motor industry; and if he will make a statement on the matter. [36918/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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1I am advised by the Revenue Commissioners that on the introduction of vehicle registration tax (VRT) on 1 January 1993, there was a requirement for all vehicles to be presented for examination prior to registration. However, by the early years of this decade, the Revenue Commissioners had adopted a risk-based approach to the registration of vehicles, thus eliminating the need for all vehicles, save those that posed a serious risk of loss to the Exchequer, to be examined prior to registration. While this risk-based approach proved satisfactory to protect the VRT yield, it meant that a significant number of the used vehicles entering the State were being registered in the State without prior examination. The Deputy will be aware that Revenue, as the registration authority for the State, also has a responsibility to ensure that all vehicles presented for registration are registered correctly. This responsibility became more onerous with the transposition into Irish law in March 2009 of EU Directive 2007/46/EC, which laid down minimum European vehicle standards as a pre-condition for registration. While the Directive impacts only on new passenger cars at present, its scope will be extended to all vehicles by 2014. Additionally, other EU Directives will extend obligations on the registration authorities of all Member States to examine all vehicles prior to registration. In addition to the EU vehicle inspection requirements mentioned above, concerns were raised by members of the Oireachtas, An Garda Síochána, the Road Safety Authority and indeed the motor trade regarding the provenance and safety of some of the used vehicles presented for registration. To address these concerns, the Government decided to make legislative provision to allow for the appointment of a competent person to carry out a pre-registration examination on all vehicles presented for registration. The intention of the relevant law was to ensure that all the conditions necessary for the registration of a vehicle and the proper administration of VRT are complied with before a vehicle may be registered in the State. Thus, section 131 of the Finance Act 1992 (as amended by section 104 of the Finance Act 2010) provided for the appointment of a "competent person" to carry out certain functions relating to the registration of vehicles in the State on behalf of the Revenue Commissioners, while section 109 of the Finance Act 2010 provided for the authorisation of such competent person in respect of the collection and payment of the tax to the Revenue Commissioners.

The requirement to have all used vehicles presented for pre-registration examination has presented some new challenges for both Revenue and the competent person appointed to carry out these functions, namely, the NCTS. In consultation with other stakeholders, e.g. the Society of the Irish Motor Industry (SIMI), the Farm Tractor & Machinery Trade Association Ltd (FTMTA), Revenue and the NCTS are facing these challenges and have implemented some revised procedures to speed up the registration process. For example, the NCTS have recently put procedures in place to provide additional capacity in their centres, including extending the opening times in some centres and the configuration of two additional centres for registration purposes in order to address current delays. Revenue are examining the possibility of providing electronic facilities for the registration of used vehicles that have been subjected to a pre registration examination.

Revenue is confident that with the implementation of these and other similar initiatives, an efficient user-friendly service will be available to all persons requiring vehicle registration, notwithstanding the fact that the vehicle will, in all cases as provided for in legislation, have to be presented for examination prior to registration.

Photo of Frank FeighanFrank Feighan (Roscommon-South Leitrim, Fine Gael)
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Question 61: To ask the Minister for Finance the reason there is not a similar process in place whereby a person interested in purchasing a camper van in the UK or Northern Ireland for holidays can process the vehicle registration tax outstanding on-line (details supplied); is it legal for a person to buy such a camper, pay for it and present it at an authorised VRT centre where it is weighed and so on and details sent to Wexford and some time later they will come back with the VRT figure; if he will undertake to give some degree of transparency when dealing with these matters.; and if he will make a statement on the matter. [37012/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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1I am advised by the Revenue Commissioners that they have in place an extensive database of vehicle valuations. From this database, they have built an on-line calculator where members of the public can, through the Internet, calculate the Vehicle Registration Tax (VRT) that is payable on a range of vehicle makes and models depending on the characteristics, i.e. age, mileage and condition of each individual vehicle within that make and model range. This database has been set up based on valuations provided by Revenue for vehicles previously presented for registration and is updated on a regular basis to reflect changes in vehicle values in the State.

Because of the uniqueness of many motor caravans (or camper vans), with some built on a once-off basis, Revenue's database does not contain valuation details for every motor caravan available on the market abroad, but only for those models previously valued when presented for registration. It is not always possible, therefore, to get a valuation from Revenue's valuation system for a particular motor caravan that an individual may be interested in purchasing. It should be noted that the same situation prevails for passenger cars, in that many vehicles on sale in the UK and elsewhere are not already on Revenue's database because the models in question may not be generally available in the Irish market or have not been previously presented for registration and have not, therefore, been valued by Revenue's valuation officers.

Regarding the valuation of a particular vehicle, VRT is assessed on the open market selling price (OMSP) of a vehicle in the State. The OMSP is defined in Section 133 of the Finance Act 1992 as the price inclusive of all taxes and duties which, in the opinion of the Revenue Commissioners, the vehicle might reasonably fetch on a first arm's length sale in the open market in the State by retail. Any person who has paid or is liable to pay VRT may appeal to the Revenue Commissioners against the amount of tax charged.

Section 130 of the Finance Act 1992 provides the definition of a motor caravan for VRT purposes. Motor caravans with an unladen weight of not more than 3,000 kilograms are classified as category B – attracting a VRT rate of 13.3% of their OMSP in the State. Motor caravans with an unladen weight in excess of 3,000 kilograms are classified as category C attracting a flat rate of VRT of €50. Vehicles with an unladen weight of not more than 3,000 kilograms with many of the characteristics of a motor caravan, but which fail to meet the motor caravan legal definition, are classified as passenger vehicles (category A) attracting a rate of VRT of between 14% and 36% of OMSP depending on the vehicle's level of CO2 emissions.

For this reason, in order to determine their category for tax purposes, many motor caravans must be weighed before they can be valued because it is not possible for Revenue's valuation officers to assess the VRT due until it has been established to which category the vehicle belongs.

The valuation of vehicles can be a complex activity involving many variables including the identification and classification of the vehicle for VRT purposes, the identification of the exact make, model, version and variant, the identification of the individual characteristics of the vehicle such as the age, condition and mileage and for many vehicles, particularly prestige, rebuilt and once-off vehicles, each vehicle must be valued individually.

The Deputy may wish to note that the Commissioners have made the valuation process undertaken by their staff as transparent as possible by publishing on their web site www.revenue.ie 1their internal valuation manual. This manual contains the set of instructions issued to valuation officers detailing the procedures that must be followed in valuing a vehicle. These instructions are freely accessible to members of the public who wish to know the process by which Revenue officials form an opinion as to the value of a vehicle.

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