Vol. 491 No. 3
246 Mr. Ring asked the Minister for Finance the way in which he can justify the recent clampdown and repossession of 4 X 4 commercial vans with seats in the rear section as used by many farmers; the number of vehicles repossessed; the number of people who have paid the fine of £1,000 for the return of the vehicle; and the plans, if any, he has to abolish this ruling. [11992/98]
Once the legislation dealing with vehicle registration tax (VRT) is enacted, its administration is a matter for the Office of the Revenue Commissioners. I am informed by that office that the vehicles referred to by the Deputy are illegally converted vehicles which have been encountered recently by the revenue mobile service. An illegally converted vehicle is one which has been converted to a higher vehicle registration tax category and on which the additional VRT due has not been paid. It is an offence contrary to section 139 (3) (ee) of the Finance Act, 1992, as amended, for a person to be in possession of such a vehicle. The penalty is forfeiture of the vehicle and the payment of a fine of £1,000, on conviction. The most common form of conversion is where a goods-carrying category C vehicle, liable to VRT of £40, is converted to a category A passenger vehicle, liable to VRT of 22.5 per cent or 28 per cent of the open market selling price. The fitting of seats and-or windows to the rear of such a vehicle constitutes conversion.
The number of illegally converted vehicles seized in 1998 to date is 83. To date, 81 of those vehicles have been released on payment of varying compromise settlements. The amount of each compromise settlement depends on: the circumstance of each case, the type of conversion involved, the amount of VRT evaded, and whether, on release, the owner intended to retain the vehicle in its existing condition or reconvert it to its original state.
A further 28 cases were reported with a view to the institution of legal proceedings. Compromise sums in lieu of proceedings were accepted in these cases.
The amount of tax being evaded on these illegal conversions is considerable. In view of the potential loss to the Exchequer, I have no plans to make changes to the existing legislation.
