Bens warns that paying foreign tax may be illegal
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• by Michael Jewell
Senior lraffic Commissioner Michael Betts has warned that registering vehicles abroad purely to pay a lower rate of vehicle taxation might well be against European law.
He was speaking at a public inquiry called so that Ayrshirebased Reids Transport Co could explain why its Irish-registered vehicles are specified on its Scottish Operator's Licence and its Irish Carriers Licence.
Betts said his attention had oeen drawn to the European Journal of May 1996, which stated that the taxation systems varied considerably between member states, and individuals could not register vehicles in the member state of their choice, otherwise it would lead to everyone registering their vehicles in the member state with the lowest taxation rates.
Reids director Robert Laidlaw said that in September 1998 he had formed Reids Bulk Transport Co (Ireland) with an office in Dublin and a yard in Co Donegal. In March 1999 he started registering and testing vehicles in Ireland.
No question was raised by the Traffic Area when he applied to specify the vehicles on the Scottish 0-licence.
In April or May a vehicle was stopped during Operation Mermaid, and he was told by the Vehicle Inspectorate that the Scottish community authorisation produced was invalid, as the company had to hold community
authorisation documents issur in the country in which the vel cies were registered.
The Irish company dr. applied for and was granted ; Irish Road Fleet Carriers licerk for 31 vehicles, as that was if only way it could get communi authorisations issued in Irelan Both companies were handlii cross-Channel traffic ar domestic traffic in Ireland.
The TC said he did not hal an issue with Laidlaw obtainii an Irish Koonce. What co cerned him was that the vet des were now specified more than one licence. Th seemed contrary to British le islation and contrary to ti intent of the European legisi tion. It seemed obvious th vehicles could not be specific on more than one licence.
It had to be a nonsense vehicles could at the same tin be specified on 15 separa licences in 15 different membi states, Betts added, been: someone who was so mindE could play one off against tt other. He will announce his dec sion in writing.
• For a review of the ruk governing flagging out, see Leg Bulletin, CM 9-15 March.