Motor Tax evasion

I was looking at figures of cars registered on various government and CSO sites.

I discovered that the number of cars taxed as small PSVs is larger than the number of PSV vehicles registered. BTW many PSVs with low CO2 aren’t taxed as PSVs anymore as the owners find it easier to sell on the cars if they aren’t flagged in online vehicle history checks as having been registered as a PSV.
I discovered that we have over 1000 vehicles paying Island vehicle tax. There is no way that there could be 1000 island vehicles on the few Islands around the Coast which aren’t connected to the mainland by bridge. They’re certainly not on Inis Mor.
PSVs and Island Motor tax costs approx 100 euro each which is significantly cheaper than most other Motor tax classes.

I find this information in the space of a few minutes. I pass the information on to the relevant Minister for investigation. I figure if the tax evaders are caught then that is many millions of euro of extra tax collected over the space of a government term of 5 years.

Today, I receive a PFO letter telling me to report any incidents of crime known to me to Garda. Yada, Yada…

From this I can deduce that the Government of Ireland couldn’t be bothered to clamp down on Motor tax evasion which would allow them to reduce motor tax rates for honest citizens and it is easier for them to just charge honest people more despite Ireland already having the most punitive motor tax rates in Western Europe(maybe NL is worse)

This is the quality of Government you enjoy in Ireland.

I don’t understand how the system works. Could you explain further?

My understanding is that any vehicle can be taxed as PSV (once it passes the inspection) regardless of registration status. For example, if I decide to turn my car into a taxi I can tax it as PSV. However, it will have been registered as a passenger car not PSV. Or do I misunderstand?

Edit: re the island vehicles, presumably a bit of time on Google Earth could validate the true number.

There is a very full list of cars by make and model provided by the taxi regulator which can be used legitimately as TAXIs. A first step would be to identify the cars which aren’t on that list and then invalidate their tax discs. motor tax office wouldn’t be talking to taxi regulator.
As for the Islands a quick visit to the few islands would find the cars there; they’re all windswept so the cars have nowhere to hide. The cars found are valid, the cars not found are driving around on the mainland and their discs should be invalidated.
Inis Mór is the largest of them and I cycled it in an afternoon. It doesn’t exactly have all that many roads on it.
This is all do-able and the return justifies the expense involved if only they had the inclination.

But my point is, it doesn’t seem inconceivable that 1000 vehicles were initially registered as passenger cars and then later became taxis. Unless I’m misunderstanding something.

But they are. I think you’re missing something. In order to tax a vehicle as a PSV:

so I think this one isn’t a real issue.

PSV motor tax:
cross reference the 22964 PSVs registered in 2013 nationaltransport.ie/wp-cont … 2_2014.pdf there are only 21900 active licenses.

There is a discrepancy there. There is a financial motivation to not return an ex PSV to the standard motor taxation classes. there is a financial motivation not to tax a new CO2 based car as a PSV as it destroys its retail value.

Also could be timing differences. Registrations are at 31 Dec but the SPSV numbers seem to be released as of 30 June each year. Note the date on the PDF directory is 2013/10 so it is not up to 31 Dec anyway.

5% timing difference on over 21000 cars. I think not.

Do you not agree that when presented with an obvious discrepancy between official figures a citizen deserves better than a PFO response especially as the Department has more data available to them that they can quickly pull to figure out whether there is something to go on.

Oh completely. They should have explained themselves, for example pointing out the fact that you must hold a PSV license for a specific vehicle when you tax it as such. So I can’t see how you would get away with taxing as PSV without licensing it as PSV, which seems to be what you’re implying, except for timing differences.

I’m sure there are motor tax evasion scams, but this doesn’t seem like one.

Taxis when being sold will have the full one year tax on them and friends of taxi drivers who get the car passed on to them will get it changed back to taxi as needed.

People are transferring ownership on private cars to avoid back tax but you think that people aren’t working around current PSV motor tax regulations. I know someone who avoided 300 euro on motor tax by trnasferring ownership between spouses.

explain this monstrosity and the reference to PSV

cars.donedeal.ie/cars-for-sale/c … le/7689861

So, timing differences. Between the term of license and tax.

There definitely seems to be a possible issue around vehicles being sold on with PSV tax. Not quite sure how it would be possible to avoid that though, unless they aligned the tax and licensing term, i.e. both run to 31 Dec. Hardly a big deal though.

Because it is a

allegedly.

Also, Justin Bieber has one apparently.

dailymail.co.uk/tvshowbiz/ar … geles.html

ballpark 600 euro evaded on average each time. I wouldn’t call it a small issue especially when the information is in the hands of the department and traceable.

1809 euro tax per year versus 100 euro? I can see 1700 reasons to evade tax.

Let’s say half of that on average, i.e. sold halfway through the tax year. So even assuming that every single one of those 1000 vehicles was being illegally sold on to a non-license holder, the maximum loss of revenue to the state is €300,000 per year.

I’m not sure how you think this problem could be solved. The suggestion you made about cross-checking models would not help at all since the vehicles had to be PSV-liensed already.

If you were in charge, how would you solve it?

There are lots of large engined cars driving around with no tax. Their owners risk fines and seizure, but if you’re saving up to 2,300 a year, for some it’s worth the risk. I also imagine that many people with larger-engined cars in border areas have worked out ways to register their cars in the North to avoid punitive tax here. I’m not in favour of tax evasion, but the car tax system is so badly designed (eg, it makes perfectly good cars valueless after 8 years) that it encourages such behaviour.

If I were in charge I’d be doing the exact same thing I do in work which is pull data stored in various locations, collate it and check what is thrown up.

Nope, big engined cars is where the evasion is at, not small ones. Don’t accept your figure and the best way to maximise the value of an ex-psv car is with a full year tax to sweeten the deal.

The taxi regulator has a list of valid PSV licenses at any point in time. I’d have no problem with using that as a reliable cross-reference point to begin with. 100% isn’t needed; just enough to catch enough evaders for the evasion scheme to become unattractive but as I said Government would prefer to tax the law-abiding more than chase those who evade tax.