Michael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 90, 91 and 92 together.

I am advised by Revenue that its approach to enforcement of the law relating to Vehicle Registration Tax (VRT) is that in each instance where a failure to comply with the relevant legal requirements is detected, the matter is dealt with in a manner that is fair and proportionate in the circumstances of the particular case. Section 5.4.2 of the VRT Enforcement Manual gives examples of the forms of action appropriate in the various situations that a Revenue Officer may encounter.

In certain instances, a warning will be given or a VRT Demand Notice issued in accordance with Section 5.5 of VRT Enforcement Manual.

A vehicle may be detained under section 140(3) of the Finance Act 2001 where an Officer has reasonable suspicion that the vehicle has not been registered in the State, has been converted and a declaration of conversion has not been made, or VRT has not been paid. It may be detained for such period as is required by the Officer to carry out enquiries to determine whether such vehicle has been registered, such declaration has been made or such VRT has been paid. The period of detention is the earlier of the period of time taken to make such enquiries or on the expiration of a period of one month.

Where an Officer forms the view that a person is a resident of the State and in possession of an unregistered vehicle contrary to section 139 of the Finance Act 1992, and that the person has had the vehicle in the State for in excess of a 30-day period, the vehicle may be lawfully seized in accordance with Section 141 of the Finance Act 2001.

Depending on the circumstances of the particular case, Officers may offer local release of the seized vehicle at the roadside pursuant to the provisions of s.144(2) of the Finance Act 2001 on payment of a compromised sum. Paragraph 5.8 of Section 5 Enforcement of the Vehicle Registration Tax Manual sets out the procedure for local release of seized vehicles.

Paragraph 5.8.1 provides that an officer may offer the local release of a seized vehicle in cases involving a first offence, including a seizure that resulted from a VRT Demand Notice (Form VRT31) being ignored. In all other instances the case is reported to Revenue’s National Prosecutions and Seizures Office (NPSO) for a decision on what action(s) should be taken. It is also provided in that paragraph that in instances where a seized vehicle is released locally, this should be approved and closed by management at Higher Executive Officer level or higher, with all documentation maintained locally. Paragraph 5.8.4 sets out the scale of compromise amounts to be applied in local release situations.

Any petition made by a person subsequent to the release of the vehicle is dealt with by a manager at local level. If the person is not satisfied with the outcome of this local review, he/she is informed that the petition can be reviewed by NPSO. In such cases, NPSO will request a complete file on the seizure and release terms from the seizing station. Additional information may be requested from the officers concerned and/or the person whose vehicle was seized. A review is conducted and the petitioner is written to informing them of the outcome of their petition and the seizing station is informed likewise. This review is entirely independent of the seizing station.

The number of warnings issued, detentions, vehicles seized for VRT related offences and the number of cases where a compromise sum was paid for the period November 2022 to end January 2023, is set out below. I am informed that these monthly numbers may fluctuate as Revenue’s systems are updated in respect of each case. This data is based on information as of 6 March 2023:

The table below outlines the number of VRT petitions and appeals heard and granted relating to Revenue’s ‘Seize and Release’ VRT Enforcement Procedure in the period 2016 – 2022. I am advised by Revenue that data prior to 2016 is not available.