Éamon Ó Cuív (Galway West, Fianna Fail)
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129. To ask the Minister for Finance the steps he will take to ensure there is no illegal avoidance of carbon tax on solid fuel taking place particularly in view of the fact that the tax take on same reduced by 21% in 2017 compared to 2016; and if he will make a statement on the matter. [28020/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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Solid Fuel Carbon Tax (SFCT) was commenced in May 2013 and initially applied at a rate of €10 per tonne of carbon dioxide emitted when combusted.  In 2014, the SFCT rate was increased to €20 per tonne of carbon dioxide emitted. Current SFCT rates per tonne are €52.67, €36.67, €17.99 and €27.99 respectively for coal, peat briquettes, milled peat and other peat. Approximately 75% of SFCT yield relates to coal. Annual SFCT net receipts are given in the following table.

Revenue has responsibility for administering SFCT and, as it does with all taxes and duties, takes a risk-focused approach in its deployment of resources on compliance activities.

Solid Fuel Carbon Tax (SFCT) is collected by Revenue on a self-assessment basis and compliance with SFCT law is enforced using the full range of compliance interventions and enforcement provisions for self-assessed taxes. Liable fuel suppliers must file a return and pay for each bi-monthly period by the last day of the following month. Where suppliers do not submit returns by the due date Revenue will issue an estimate of the tax due. The estimate is the amount of tax that Revenue will pursue if a supplier does not complete and file their return. If a taxpayer fails to pay the amount due, including any debt for which an estimate has issued, Revenue may refer the debt for enforcement action. This can include sheriff enforcement, civil proceedings through the courts or attachment of third parties. I am advised that, to date, Revenue has undertaken actions, including sheriff enforcement, civil proceedings through the courts or attachment of third parties, to enforce approximately €600,000 of Solid Fuel Carbon Tax.  

European Union Single Market constraints preclude the use of any cross-border movement controls in the administration of SFCT. Therefore, Revenue has no authority to stop vehicles and physically inspect loads of solid fuel. Similarly, the transport or possession of solid fuel that originated in Northern Ireland are not, in themselves, Revenue offences and Revenue's officers have no authority to challenge such transportation or possession.

As I, and my predecessor, have pointed out before, because of the price differential with Northern Ireland, the collection of SFCT is heavily reliant on the regulatory regime covering the marketing, sale, distribution and burning of solid fuels in the State. This regulatory regime is operated by the Department of Communications, Climate Action and Environment and is enforced by local authorities.  This regime, which imposes higher environmental standards on coal in the State than applies in Northern Ireland, enables local authorities to undertake enforcement action to prevent the sale or distribution of coal that does not meet our standards. 

I am advised that Revenue met with the Department of Communications, Climate Action and Environment to discuss the effectiveness of the regulatory regime for solid fuel and to explore how Revenue could support the Department to improve matters in light of continuing concerns that fuel sourced from Northern Ireland is getting onto the market here.  I understand that contacts are ongoing with a view to undertaking a number of joint operations and to explore the scope for follow up action by Revenue in relation to persons found to be in breach of environmental regulations. However, any such operations will be based on a clear understanding of the statutory responsibilities of the agencies involved.