Ned O'Keeffe
Question:53 Mr. E. O'Keeffe asked the Minister for Finance the measures, if any, he will taken to ensure that travelling traders are properly registered for VAT and income tax in line with other businesses in the State. [4945/96]
Written Answers. - Taxing Travelling Traders.
One of the most important programmes in Revenue's special inquiry branch, in the Dublin area and in its local inquiry units in tax offices around the country, is the identification of people with taxable income who are not registered for tax purposes. This programme includes a focus on travelling traders.
As a matter of course, street traders and town markets are monitored and, where appropriate, travelling traders are registered for any tax for which they are likely to be liable. Revenue is particularly anxious to ensure that traders, whether travelling or in permanent establishments, do not have a competitive advantage over other traders arising from non-compliance with tax requirements.
Compliance projects dealing specifically with travelling traders are conducted from time to time in various parts of the country. In one such operation in 1994, approximately 50 traders were identified and put on tax record.
Special inquiry branch and the local inquiry units pay particular attention to occasional sales by non-resident traders, sometimes organised at short notice, in various parts of the country. During 1995, more than 50 such sales were attended by Revenue officials and over £200,000 VAT was collected "on the spot".
In recent years, Revenue has invoked, against both travelling traders and traders in permanent establishments, the provisions of section 23A and section 37 of the VAT Act, 1972. Section 23A allows the Revenue Commissioners to require a taxable person to give security for the payment of any VAT which may become due. Section 39 allows the Revenue Commissioners, where it appears necessary to them, to hold an Irish-based person, who provides a premises, to be liable for the VAT incurred by a trader not established in the State who is trading in that premises. Both these provisions have proved particularly valuable in confronting non-complaint travelling traders.
The Casual Trading Act, 1995, provides that application forms for casual trading licences should be in a form determined by ministerial regulations. The Government has decided that applicants for licences should be obliged to quote an RSI number as this would help to underpin tax compliance for this category of travelling trader.
Revenue is broadly satisfied that there is a strong awareness among travelling traders of the possibility of detection of taxable activity. Revenue activity from 1993 onwards appears to have led to a significant reduction in the number of occasional sales by non-resident mobile traders.
If the Deputy has specific information relating to travelling traders, which could be of assistance to the Revenue Commissioners, they would be glad to receive it.