Tax evaders targeted in roadside clampdown

Customs and Excise officials have taken possession of millions of euro worth of cars as part of a major Revenue operation against…

Customs and Excise officials have taken possession of millions of euro worth of cars as part of a major Revenue operation against motorists trying to evade Vehicle Registration Tax (VRT) and VAT.

So far officers have impounded over 40 foreign-registered vehicles in Dublin worth in excess of €3.5 million. The owners of the most of the cars have paid tax bills and penalties averaging almost €30,000 each.

However, currently 11 premium cars worth over €965,000 remain in the Revenue Commissioners' possession.

The authorities began a clampdown at the beginning of the year on motorists living in Ireland but who driving foreign registered cars, most in Britain or Northern Ireland.

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As part of the clampdown, a series of checkpoints were set up across Dublin over recent weekends and, in an attempt to catch tax-evading commuters, checkpoints were also set up during the morning and evening rush-hours.

Officials took possession of some cars at the roadside and left their owners to find another way home.

The Revenue Commissioners have confirmed that the operation will continue indefinitely. They have warned tax-evading motorists to expect more checkpoints.

So far, the crackdown has been confined to the capital, but it is expected to be rolled out across the State in the coming months.

According to a spokesperson, the operation to date has targeted only expensive premium cars. However, it has now been widened to take in all foreign registered cars being used here illegally. "All cars are now being targeted, with a particular emphasis on high value cars," confirmed a Revenue spokesperson.

Under current legislation, imported cars must be taken to a vehicle registration office not later than the next working day after their arrival in Ireland. There they are assessed and the owner told how much VRT is due. After paying the VRT, a receipt is issued which shows the Irish registration number assigned to the car.

The new registration plates must then be fitted to the car within three days. Road tax must also be paid before the car is first used in a public place.

Failure to follow this strict timescale can lead to the imported vehicle being impounded and the owners being liable for a substantial financial penalty.

Penalties are directly linked to the length of time it takes a motorist to register an imported vehicle. For example, if a car is not registered within 30 days of arrival, a penalty of 10 per cent of its open market value is due in addition to the VRT and VAT. This can amount to a significant sum as the owners of the 41 recently impounded vehicles found. Between them they have paid almost €1.2 million to get their cars back.