Eamonn Maloney (Dublin South West, Labour)
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To ask the Minister for Finance his views on the need to introduce legislation for trade in second hand tyres in view of the fact that some companies may operate without paying rates or VAT, have no waste management policy, operate on cash sales and often sell products that are not certified and are often of questionable quality. [44613/12]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that they are very mindful of the unfair competitive advantage to be gained by those businesses that do not fulfil their tax obligations. Revenue’s tax and duty compliance programmes are under constant review to ensure that they are focussed on the areas of greatest risk, including risks from the shadow/hidden economy. There is a strong focus on cash businesses, given its potential high-risk nature, and I am informed that in the first eight months of 2012 audits specifically targeted at these businesses have yielded over €12m. In this regard, I am advised by the Commissioners that regarding the retail and wholesale motor vehicle parts and accessories sector, 17 Audits have been carried out so far in 2012, yielding €331,165. In 2011, 37 audits were carried out in this sector, yielding €483,070. These statistics are compiled from Revenue’s records and I am informed that for the purpose of their records, the motor vehicle parts and accessories sector includes the tyre distributor industry.

Revenue holds meetings with trade and representative bodies nationally and locally through the Hidden Economy Monitoring Group where the risks posed by shadow/hidden economy activities are discussed. Furthermore, Revenue encourages anyone who has specific information regarding any business that is engaged in tax evasion, to submit the details to their local Revenue office.

With regard to the operation of cash sales, the Deputy should be aware that a trader supplying goods is not required to register for VAT unless their annual turnover exceeds €75,000.