Michael McGrath (Cork South Central, Fianna Fail)
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As the Deputy is aware all motor vehicles in the State must be registered within 30 days of their date of entry into the State at which point Vehicle Registration Tax (VRT) is charged. In certain cases, a full or partial exemption from VRT may apply, if the person registering the vehicle is transferring their residence to the State.

In order to qualify for Transfer of Residence (TOR) relief, the person registering the vehicle must have had normal residence abroad and is now taking up normal residence in the State. In addition, the vehicle is required to have been in the person’s possession for a minimum of six months before the transfer of residence to the State, and brought into the State within 12 months of transferring residence. Further information on VRT and the associated reliefs/exemptions is available on Revenue’s website at www.revenue.ie/en/vrt/index.aspx.

Please find below data in respect of the numbers of transfer of residence applications received as requested by the Deputy.

Michael McGrath (Cork South Central, Fianna Fail)
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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 of the VRT Enforcement 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 must be 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 sums to be applied in local release situations.

The number of warnings issued, detentions, vehicles seized for VRT related offences and the number of cases where a compromise sum was paid and the amounts paid for the period January to December 2023 are 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 extracted from Revenue systems on 13 February 2024: