Calls for action on tax evaders

MOVES TO battle the illegal use of foreign-registered cars in the Republic are being hampered by motorists who are resident here being able to insure such vehicles, the Society of the Irish Motor Industry (SIMI) has claimed.

The claim comes as an Garda, local authorities and the National Vehicle Driver File (NVDF) propose greater co-ordination to crack down on vehicles whose owners are evading Vehicle Registration Tax (VRT) and motor tax, including linking their information technology systems and plans to scan all incoming vehicles at ports of entry.

But SIMI, which earlier this year called on its members and their employees to note and report all known residents of the Republic who drive foreign-registered cars, said it believed there were a number of loopholes which allowed the practice to continue. The organisation estimates the Government is losing out on between €50 million and €100 million annually due to people failing to pay VRT and road tax.

A senior garda confirmed to The Irish Timesthat the force was aware of foreign-registered cars being detected over protracted periods of time, carrying Irish insurance discs, in contravention of Revenue Rules.

Under the Revenue rules, residents of the Republic should not drive foreign-registered private cars at all, and those who import such vehicles should have them re-registered within 24 hours of arrival in Ireland. In practice the Revenue are prepared to give motorists a week to re-register. Visitors to the Republic should drive foreign-registered cars for no more than 30 days.

The Irish Insurance Federation said its policy was not to issue insurance certificates to such vehicles. But the gardaí and SIMI say vehicles with foreign registrations – mainly from Britain and Northern Ireland – are being issued with insurance discs. The Irish Insurance Federation said it was not the policy of member companies to issue insurance certificates to foreign-registered cars.

But SIMI's Tom Cullen told The Irish Timesa number of loopholes existed such as motorists acquiring temporary insurance certificates to allow them to import the car, but in many instances the policies continue to cover these vehicles for extended periods of time.

Among the measures proposed by gardaí and others to crack down on the use of foreign-registered vehicles by Irish residents is the use of automatic number plate recognition in ports of entry, coupled with interviews with drivers.