Irish Drivers Association        Irish Drivers Association

LEGAL CHALLENGE TO VRT

Press Release 16th July 2009: VRT Challenge

The Irish Driver’s Association have decided to legally challenge vehicle registration tax (VRT) under the Treaty of Rome in addition to section 140 of the 1992 Finance Act (which gives effect to VRT on new and imported vehicles into the state). It is our understanding that VRT is an import/customs duty in disguise under Articles 25 and 90 of the Treaty of Rome. The Irish Drivers Association believes that this is a prohibited tax under the Treaty and as citizens of this state, we prohibited this tax when we agreed to join the EU by passing the 1972 referendum.

We would like to point out that regardless of what name is attached to this tax, VRT is by its very nature a customs duty. It is charged within 24 hours of the vehicle arriving within the jurisdiction and is triggered by the fact that it has crossed a border and by possession of the vehicle alone. Borders between EU states do not exist in terms of the single European Market (Article 14.2). This tax impedes the free movement of goods and in doing so breaches a fundamental objective of the EU. In other words changing the name does not alter the nature of the tax. If the government considers this not to be a customs duty why is there a requirement to pay VRT within 24 hours even if the vehicle may not be used for months?

The Association are already challenging the unlawful seizure of citizens’ vehicles related to VRT as this infringes their Constitutional rights to own property already lawfully acquired under Article 15 and Article 43 of the Irish Constitution. In addition it breaches the principle of proportionality which also interferes with the peaceful enjoyment of their possessions. Principle of proportionality means that the states actions must be in proportion to the alleged offence. A car worth € 25,000 shouldn’t be seized for non payment of a (dubious) tax of say € 4,000.

The effect of VRT implemented by the 1992 Finance Act circumvented an EU prohibition on customs duty (Article 25). Customs duty on vehicles disappeared on the 31st December 1992 and the following day a new tax called VRT replaced it. This was brought about by the action of the people you voted for, our Oireachtas and effectively overrode EU law. This it cannot do because EU law is supreme in terms of community matters and in the promotion of free movement of goods, fundamental freedoms under the Treaty of Rome and the implementation of the Single European Market.

The prohibition of customs duties had effect from the 1st of January 1973. Derogations (Opt out clauses) were sought whereby the Irish Government conspired with the EU to defraud their citizens and for what reason – only to continue by improper means the charging of a prohibited customs duty. The Treaty Article 25 itself contains no provisions for derogations so it would appear derogations were conjured up to continue to defraud Irish citizens. What was the purpose of writing Article 25 if it can be undermined, circumvented and effectively made nugatory by a finance act which interferes with our EC Law rights and what was the purpose of joining the EU if we were to be denied the full benefits of membership?

For these reasons and others The Irish Drivers Association feels that it is necessary to challenge VRT and restore our fundamental rights under both EU law and Irish Constitutional Law. We would welcome donations from existing and new members to help us in this cause as it would benefit all motorists and citizens with a vested interest in seeking a positive outcome, we thank you for any support that can help us achieve our aim. Receipts will be given for all donations received.

Donations/Contributions can be made to:
IRISH DRIVERS ASSOCIATION VRT CHALLENGE FUND
Bank: ULSTER BANK, O’Connell Square, Ennis, Co. Clare
Bank sort code: 98-56-80 Account number: 10078581
For further information please contact any of the following Association officers or send donations to Irish Drivers Association, Aughalina House, 55 Gallows Hill, Ennis, Co. Clare
John Lernihan (Chairman) 087 2509123
David Russell (Secretary) 087 2312250
John Doherty (Chairman Donegal Branch) 086 8789925