Dáil Éireann díospóireacht -
Thursday, 20 May 1993

Vol. 431 No. 2

Written Answers. - Tax Clearance Certificates.

Enda Kenny

Ceist:

75 Mr. E. Kenny asked the Minister for Finance the proposals he has to deal with publicans who will not be in a position to acquire tax clearance certificates from the Revenue Commissioners; the number of such publicans involved; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

Tax clearance certificates are required under section 156 of the Finance Act, 1992 for any licence commencing on or after 1 October, 1992 which is a spirits retailer's on-licence, a spirits retailer's off-licence or a wine retailer's on-licence.

I am informed by the Revenue Commissioners that the tax clearance provisions have been very successful in bringing the affairs of many traders up to date. In the nine months since the scheme commenced, some 10,500 tax clearance certificates have been issued thereby enabling the applicants to renew their liquor licences and continue to trade in accordance with the law. In the process some £34 million of apparent tax arrears has been addressed by applicants, including arrangements for payment by instalments over a period of time where the circumstances of the case warranted it.

There are a further 2,200 traders who have applied to the Collector General for tax clearance but in whose case matters have not yet been finalised. In some of these cases discussions are continuing and it would be hoped to reach a decision shortly. In many other cases however, there has been no progress since the initial application. The Collector General has therefore placed such applicants on notice that a final refusal of tax clearance will issue in the absence of action by them to progress the matter. The effect of a formal refusal is to make the applicant liable to prosecution for trading without a licence, although it does not preclude the applicant from subsequently obtaining a tax clearance certificate.

1,100 traders who formerly held licences have failed to apply for tax clearance, despite reminders. The Collectors of Customs and Excise have initiated action against those who failed to apply for tax clearance and continue to trade without the necessary licence.

In conclusion, I should mention that the Collector General's Office is still prepared to meet with publicans who are in arrears and who are prepared to make realistic efforts to discharge those arrears over a reasonable period of time. However, such publicans are strongly advised to act urgently as failure to regularise their affairs may result in legal proceedings being instituted against them.