Dáil Éireann debate -
Wednesday, 13 May 1998

Vol. 491 No. 1

Written Answers. - Tax Relief.

Phil Hogan

Question:

74 Mr. Hogan asked the Minister for Finance if refunds, tax relief or exemptions are granted to Bus Éireann on the application of excise duty on hydrocarbon oil in relation to a journey from the garage to the starting point of the service and the return journey to the garage on completion of the service; and if the vehicle has to drive to another location to start the service and vice versa in relation to return journeys whereby there are no passengers aboard, ad hoc passenger services and tour operations. [11383/98]

Minister for Finance (Mr. McCreevy)

Rebates of excise duty are given to Bus Éireann. The Office of the Revenue Commissioners must, however, respect the confidentiality of their dealings with the public and do not comment on the business or tax affairs of individual persons or companies. The general question as to whether repayments of excise duty can be allowed in respect of journeys to and from garages is currently the subject of an appeal under section 105 of the Finance Act, 1995. In the circumstances, it would be inappropriate to make any comment on the issue prior to the hearing of the case by the appeal commissioner.

Phil Hogan

Question:

75 Mr. Hogan asked the Minister for Finance if he will clarify the refunds or tax relief, if any, levied on Bus Éireann in relation to actual or potential carriage of passengers; and if he will make a statement on the matter. [11384/98]

Minister for Finance (Mr. McCreevy)

I assume that in framing this question, the Deputy wants to know if the level of repayment is the same whether the bus is full or not. Apart for the general difficulty of operating tax repayments which are based on fluctuations in passenger loads, I am advised by the Office of the Revenue Commissioners that the repayment laid down in section 73(7) of the Finance Act, 1984, applies to all qualifying scheduled journeys. Provided that the journey and the operator meet the qualifying conditions for repayment, as laid down in the Imposition of Duties (No. 221) (Excise Duties) Order, 1975, SI No. 307 of 1975, the number of passengers carried during all or part of the journey does not affect the repayment.

Phil Hogan

Question:

76 Mr. Hogan asked the Minister for Finance if there are limiting qualifications or restrictions applying to the application of duty in relation to Bus Éireann; and if he will make a statement on the matter. [11385/98]

Phil Hogan

Question:

78 Mr. Hogan asked the Minister for Finance if Dublin Bus and Bus Éireann are granted refunds or tax reliefs from excise duty on hydrocarbon oil that is different from that of the private commercial licensee under the Road Transport Act, 1932; if he will outline the attendant licence conditions, if any, associated with excise duty; and if he will make a statement on the matter. [11387/98]

Minister for Finance (Mr. McCreevy)

I intend to take Questions Nos. 76 and 78 together.

The Office of the Revenue Commissioners advise me that repayments of excise duty paid on hydrocarbon, heavy, oils used in the provision of passenger road services can be claimed under the provisions of paragraph 12 (11) of the Imposition of Duties (No. 221) (Excise Duties) Order, 1975, SI No. 307 of 1975. The requirements for claiming repayments are that the operator must be a licensee under a passenger licence granted under section 11 of the Road Transport Act, 1932, in respect of the passenger road service within the meaning of section 2 of that Act or must be exempted from the application of section 7 of that Act; the excise duty on hydrocarbon oils imposed by paragraph 12 (1) of SI No. 307 of 1975 must have been paid on the oil used for combustion in the engine of a mechanically propelled vehicle in providing the service. Section 7 of the Road Transport Act, 1932, created an offence for operating an unlicensed passenger road service.

Section 24 of the Transport Act, 1958, provided an exemption for CIE from the application of section 7.

The rate of repayment is laid down in section 73(7) of the Finance Act, 1984. The rate is "the amount of excise duty paid less an amount calculated at the rate of £1. 79 per hectolitre". The rate applies to all qualifying journeys, regardless of whether the operator is a licensee under section 11 of the Road Transport Act, 1932, or is exempt from licence by virtue of section 7 of the Road Transport Act, 1932.