Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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Question 376: To ask the Minister for the Environment, Community and Local Government if he will review the application of changes to commercial taxation introduced by the last Government, which penalises licence holders who drive vehicles with commercial taxation when they use their vehicles for purposes other than for work. [9168/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The situation regarding the taxation of goods vehicles has not changed.

In August 2010 my Department issued a circular letter to motor tax offices reminding authorised officers of existing provisions with regard to the taxation of vehicles on a goods basis. This reiterated the terms of a 2005 circular letter (Circular MT 10/2005).

To be taxed as a goods vehicle, a vehicle must be constructed or adapted for that purpose and used solely in the course of trade or business. If a vehicle is adapted, it must have the same characteristics as a goods vehicle in relation to space and accommodation for carrying goods and it must have limited seating capacity. The vehicle must also be used in the course of trade or business. Under section 2 of the Finance (Excise Duties) (Vehicles) Act 1952, if a vehicle is used in a condition or manner which would attract motor tax at a higher rate, tax then becomes payable at that rate. In other words, if a goods vehicle is used at any time in a private capacity, it must be taxed at the private rate of motor tax.

Under Article 3 of the Road Vehicles (Registration and Licensing) (Amendment) Regulations 1992, a licensing authority must be satisfied that it is authorised to issue the licence applied for and accordingly, that it is the appropriate licence for the vehicle. It is thus open to a motor tax office to seek backing documentation to support an application for a goods vehicle licence, which is in effect a concessionary rate of tax. Such documentation could include, but is not limited to, a certificate of commercial insurance, evidence of registration for VAT or a Tax Clearance Certificate, or any other document that would assist in satisfying the licensing authority as to the basis for the application. It would not be expected that any person genuinely using a vehicle in the course of trade or business would have any difficulty providing such documentary evidence if requested to do so.

Form RF 111A Goods Declaration Form, which has been in existence for a number of years and is not a new requirement, constitutes the statement by the applicant that the vehicle is being used in the course of trade or business. This declaration should not need to be sought at every renewal once particulars of the vehicle have not changed, but it is normally sought at the time of first taxing as a goods vehicle and on change of ownership. The only minor amendment to this form is that the income tax registration number of the applicant is now requested to support the claim that the vehicle is being used in the course of trade or business.

While the legal provisions governing the taxation of goods vehicles have not changed, evidence was brought to the Department's attention that high-powered, high-specification vehicles that would not normally fall into the goods vehicle category are being increasingly claimed as goods vehicles. In that regard, it is important that motor tax offices follow the requirements to ensure a vehicle is correctly taxed. If a concessionary rate of tax is being claimed in circumstances where it is not warranted, the concomitant loss of income would in the normal course of events have to be recouped elsewhere. In this regard, all road users should pay their fair share of motor tax in line with the relevant legal provisions.

I intend to review the taxation classes currently in place for motor vehicles.

Simon Harris (Wicklow, Fine Gael)
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Question 377: To ask the Minister for the Environment, Community and Local Government the amount of road tax paid by car owners in County Wicklow in each of the years 2007, 2008, 2009 and 2010, and to date in 2011; and if he will make a statement on the matter. [9219/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The total gross motor tax receipts for Wicklow County Council motor tax offices since 2007 are set out in the following table:

* First quarter 2011