Revenue to pursue UK truck owners who register illegally here to save on taxes

More than 1,500 British heavy goods vehicles (HGVs) have registered illegally in the Republic to avail of tax rates lower than…

More than 1,500 British heavy goods vehicles (HGVs) have registered illegally in the Republic to avail of tax rates lower than Britain's, The Irish Times has learned.

Road tax for HGVs has increased significantly in Britain recently and is now £5,000 a year per vehicle, compared with £1,500 here. As a result, many haulage operators in the UK have decided to register, or "flag out", their fleets with the authorities here.

A spokesman for the Revenue Commissioners said it had estimated that up to 2,000 British trucks could be registered here at present, even though they conduct their business elsewhere.

Mr Jimmy Pierce, an assistant principal, said the Revenue was currently reviewing its list of HGVs and de-registering trucks which are not legitimately based here.

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Mr Pierce said this was part of a major clampdown on the practice. He added that only trucks whose owners could prove to the satisfaction of the Revenue that they were Irish would be admitted to the register in future.

He added that 880 vehicles had already been identified as registrations from Britain. These were owned by about 324 operators.

He said that any company seeking to register its fleet here would have to have its "centre of operations" in the Republic. "Basically in future operators will have to show they are operating a genuine road haulage business here, employing Irish people and paying taxes here."

He added that some British companies had also established shell companies to avoid detection, but these were currently being dealt with.

It is understood that the Department of the Environment, which collects road tax, is currently considering whether it has to repay the tax paid to it by hauliers who registered illegally.

It is understood that a large number of the trucks which have registered here are from Northern Ireland. The North's register of HGVs has become seriously depleted over the past year and it is believed much of this is due to registrations in the Republic.

The French and Dutch authorities recently clamped down on British truckers registering there.