asked the Minister for Finance the measures that have been taken to ensure that casual traders pay VAT on sales and deduct PAYE and PRSI from the salaries of their employees.
Ceisteanna — Questions. Oral Answers. - Casual Traders.
9.
(Clare): The Deputy will, no doubt, be aware of the Casual Trading Act, 1980, which came into operation in February 1981. The main purpose of this Act, was to provide for the control and regulation of casual trading and to ensure better compliance by casual traders with their statutory obligations, including those relating to tax.
I am informed by the Revenue Commissioners that the activities of commercially organised casual traders in a substantial way of business are kept under constant examination in order to ensure compulsory VAT registration of new entrants to the trade and compliance with the requirements of that tax and also of PAYE and PRSI by those already registered. In the case of other casual traders, continuous action is taken in the form of monitoring their sources of supply with a view to ensuring the due payment of VAT on their purchases. Such persons are normally self-employed and the question of registration for PAYE and PRSI does not arise. The VAT registration limit for casual traders selling goods is £30,000 annual turnover.
How many casual traders are registered for VAT?
(Clare): I have not got that number here but I will let the Deputy have it. Details of licensed holders, the numbers of people issued with licences are given to the Revenue Commissioners each year, but I do not have the numbers at present registered. That would be those with over £30,000 turnover.
Yes, but how many? Would the Minister agree with me that in order to judge the effectiveness of the measures he has outlined one would need to know how many people have registered for VAT as a result of these measures? If that number is very small the reply the Minister has just given is simply so many words.
(Clare): I have not got the figure here but I will certainly let the Deputy have it. I am sure it is of importance to the Revenue Commissioners and the Department of Finance. I might say that, while it is very difficult to have a completely satisfactory system with regard to this, the Revenue Commissioners feel that there is a high level of compliance with the requirements.
How do the Revenue Commissioners monitor the sources of the supply of goods to registered casual traders, particularly in regard to goods which are not of domestic origin?
(Clare): I am informed that the Revenue Commissioners are continually monitoring the goods that these traders offer for sale.
How do they do this?
(Clare): I have not details of how the Revenue Commissioners monitor, but they claim they do so.
How much revenue, if any, has been collected from casual traders?
(Clare): I do not have that figure with me now but I will let the Deputy have it.
(Dún Laoghaire): Is the Minister aware that the type of trading now taking place is causing a great deal of annoyance to the ordinary traders in so far as they have to provide proper premises and staffing and everything else? It is a question of grave concern that they are being asked to pay the same rate of tax as somebody who can stop off at various places throughout the country and have none of these liabilities on their shoulders.
(Clare): I suggest that the Deputy puts down a question to the Minister for the Environment whose responsibility that is.