Dáil Éireann debate -
Tuesday, 30 Nov 1999

Vol. 511 No. 6

Written Answers. - Tax Clearance Certificates.

Jim Higgins

Question:

230 Mr. Higgins (Mayo) asked the Minister for Finance the concessions, if any, which will be made in respect of applicants for renewal of their pub licence in cases where they were several months late in supplying a certificate of tax clearance. [24832/99]

Minister for Finance (Mr. McCreevy)

A publican's licence (spirit retailer's on-licence) becomes due for renewal on 1 October each year and expires on the following 30 September. The new licence is issued by the Collector of Customs and Excise, on application. Section 49(1) of the Finance (1909-10) Act, 1910, as amended by section 156 of the Finance Act, 1992, provides that licences may not be issued after 1 October 1992, unless a tax clearance certificate has been issued to the applicant.

Tax clearance certificates are issued by the office of the Collector General of Revenue, Limerick, to those publicans who had received a certificate in the previous year and whose tax affairs are in order and up-to-date. A list of those publicans to whom tax clearance certificates are being issued automatically is sent to each collector of customs and excise in March or April. The collector then issues an application form for a tax clearance certificate to those publicans who do not appear on the list. In June of each year, the collector issues licence application forms to all licence holders. The application form when completed must be returned with a tax clearance certificate and the appropriate licence fee.

A number of reminders are issued to traders who have not renewed by the due date. Publicans who have not renewed their licences by the due date are liable to prosecution for unlicensed trading. Licences are required to be renewed by 1 October However, during the following licensing period (i.e. 1 October to 30 September following the expiry of the licence) collectors of customs and excise are empowered to exercise a degree of discretion in the area of renewal based on administrative precedence. The collectors can only renew a licence to an applicant in respect of a premises which were licensed in the immediate preceding year. Where a licence has not been issued in the immediate preceding year (i.e. prior to 30 September), a Circuit Court certificate is then required for renewal of the licence.

Section 49(a) of the of the Finance (1909-10) Act, 1910, as amended by section 115 of the Finance Act, 1992, provides that where an application for a tax clearance certificate has been made before 1 June of the preceding licensing year, and the certificate has not yet been issued or refused, or it has been refused and the applicant has appealed against the refusal, then the licence may continue in force beyond its expiry date pending either the issue or refusal of the certificate, or the final determination of the appeal. In such circumstances, the proper duty on the licence must be deposited with the collector of customs and excise. It is important to distinguish between the authority granted to the customs and excise in the renewal of licences and the requirement to obtain a Circuit Court certificate. In the former situation, the renewal of the licence is limited to premises and persons duly licensed in the preceding year. Where this is not the case, the applicant must apply to the Circuit Court for a certificate leading to renewal of the licence. Where a trader has a problem in obtaining a tax clearance certificate, he should bring this to the immediate notice of the local collector of customs and excise.