Some of Ireland's yacht owners have found themselves sailing in choppy waters for non-payment of VAT on their boats.
The Irish Times has learned that customs and excise officials have netted €750,000 in the past year in unpaid VAT and penalties imposed on defaulting yacht and pleasure boat owners.
The figure is due to be released in the annual report of the Revenue Commissioners which will be published in June.
The report identifies 12 offenders in an on-the-spot-check of 1,047 vessels last year, according to a spokesman for the Revenue Commissioners. Most of the money collected was in unpaid VAT. There were also payments for additional penalties.
The marine leisure industry says it has been concerned about the activities of a minority of traders who have been encouraging customers to avoid VAT charges on vessels, most of which involves vessels purchased over the Border.
Under current legislation, residents in the Republic who buy boats up to 7.5 metres long in the North of Ireland must pay 17.5 per cent VAT. However, longer vessels must pay the full VAT rate of 21 per cent. All vessels purchased in the State carry a 21 per cent VAT charge.
Several months ago, three pleasure craft valued at €100,000 and over were seized at the National Boat Show in the RDS for incorrect VAT payments.
Meanwhile the Revenue Commissioners are carrying out checks in marinas and harbours.
They are insisting that a bill of sale and VAT receipt is included amongst the paperwork of every vessel and trailer owner.
A Revenue spokesman said it was also focusing on "events" which would attract a number of visitors from Britain and the North. Mr Bernard Gallagher, managing director of BJ Marine in Dublin, said the industry welcomed the crackdown.
"If you are a first-time buyer and you make an offer on a second-hand boat through a private sale, you have to ensure that all the paperwork is in order."
He knew of a number of cases where people had been caught. "It tends to put people off boating and yachting, and that's not good for any of us," he said. The charging of 21 per cent VAT on boat safety equipment was still a bone of contention, he added.
The Irish Marine Federation has a long-running campaign to have the rate reduced or dropped altogether to encourage people to invest more in safety gear.