Dáil Éireann Debate, Tuesday - 19 November 2013
219. Deputy Thomas P. Broughan asked the Minister for Finance the steps that have been taken by his Department or the Revenue Commissioners to tackle the illegal black market in the solid fuel trade, particularly in the area of the sale of sod turf and chopped wood. [49512/13]
Amharc ar fhreagraI am advised by the Revenue Commissioners that they are aware of the threat that illicit trade in this area causes both to the exchequer and to legitimate business. Sales of solid fuel, including coal, peat and chopped wood offered for sale as a fuel, are subject to VAT at a rate of 13½ %. Any person whose sales in a 12 month period exceed or are likely to exceed €75,000 is required to register for VAT. In addition, since 1st May 2013, solid fuel carbon tax (SFCT) is chargeable on coal and peat, including sod peat, when these products are first supplied in the State. Any person making such a supply is required to register with Revenue.
Both VAT and SFCT on solid fuels are collected on a self-assessed basis and are subject to the full range of compliance interventions and enforcement provisions for self-assessed taxes applied by Revenue. In circumstances where there are grounds to believe that tax due has not been paid, Revenue investigates the suspect person’s tax liabilities and enforces the collection of any unpaid tax, including income tax, SFCT and VAT, together with any interest or penalties due. As part of its work in this area, Revenue chairs the Hidden Economy Monitoring Group (HEMG) and has established regional sub-groups of the HEMG to facilitate the reporting of information by traders through their representative associations. Suppliers who suspect or have evidence that illegal solid fuel is being sold in their area should report this to their Local Authority and to Revenue either directly or through their representative associations. Any reports to Revenue are treated as confidential and are fully investigated. There have been some reports recently concerning suspected untaxed fuel supplies and these are being investigated.
The application of the solid fuel carbon tax on coal is heavily dependant on the regulatory regime for coal put in place by the Department of the Environment, Community and Local Government, and enforced by Local Authorities. Regulations were made that established higher standards for coal supplied in the State compared with Northern Ireland and to enable local authorities to control those supplies. Suppliers who produce and supply solid fuels unlawfully are subject to investigation and prosecution by local authorities and other State Agencies charged with enforcing environmental regulations and preventing such supply. Revenue liaises with these bodies, as required, to ensure that lawful supplies of solid fuels are properly taxed.
