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15 November 2002

TOUGH NEW STEP IN BATTLE AGAINST MOTOR TAX EVASION

Another tough step against motor tax evaders was announced today by Parliamentary Under Secretary of State, Angela Smith, MP, with the launch of DVLNI’s Statutory Off-Road Notification (SORN) initiative.

SORN, which already operates in GB, will take effect from 1 December 2002 and under the SORN scheme, whenever someone’s motor tax has run out, they will either have to renew their motor tax or declare to DVLNI that their vehicle is off the road.

No longer will people be able to throw away their licence renewal form and skip a month or two before getting a new tax disc. Further, if someone is disposing of their vehicle or asking for a refund of their tax disc they must give full details to DVLNI about the new owner.

Announcing the new regulations, Angela Smith said: "This is good news for motorists who play fair and pay their taxes and law abiding motorists have nothing to fear. It will make a significant contribution to reducing the overall tax burden that is carried by those who pay in full.

"It is a fundamental change which means drivers must take more responsibility for their vehicles. From 1 December 2002, every vehicle in Northern Ireland must either be taxed or have a declaration in force stating that it will not be used or kept on the public road. This change in the law means that vehicle keepers can no longer ignore Licence Renewal Reminders. They must renew their tax disc, make a SORN declaration or notify full details if the vehicle has been disposed of.

"The new SORN arrangements will ensure that those who previously evaded paying road tax will not be allowed to get away with it any more. Further, this initiative will improve the accuracy of vehicle records and assist in the fight against road tax evasion.

" Failure to follow the new requirement, may lead to a fine of up to £1000 being imposed. If caught on the road while a SORN declaration is in force, a fine of up to £2,500, or five times the rate of motor tax may be imposed by the court. Vehicle keepers making a false declaration risk prosecution and a maximum penalty of up to £5,000, or two years imprisonment."

The SORN initiative is part of an intensive DVLNI programme, which includes wheel clamping and the use of camera technology, to improve accuracy of information held at DVLNI. Combined, these three key elements provide an integrated and effective approach to identify tax evaders, deterring the practice and punishing offenders. It will contribute significantly to improving the accuracy of the record of vehicles and keepers, which is vital in combating vehicle and other crime.

NOTES TO EDITORS:

  1. A roadside survey of unlicensed vehicles in Northern Ireland conducted in August 1999 revealed that the level of road tax evasion is running at around 10%. This equates to 79,000 unlicensed vehicles with an estimated revenue loss of £12m. This is almost three times higher than the level of evasion in G.B. (3.9% which equates to £188m).

  2. Motorists tempted to delay the payment of vehicle excise duty when they receive a vehicle licence reminder will be caught out under SORN. Many of these motorists fall into a group known as "month skippers" and will be readily identified through SORN, as DVLNI will know if a vehicle is either taxed or declared off the road. If a vehicle has neither a valid tax disc nor a valid SORN declaration, the DVLNI will be able to trace the vehicle keeper and take necessary action to ensure compliance with the law.

  3. All vehicles, which are licensed (including those issued with a nil licence) on or after the date of commencement of the scheme, will become liable to the SORN regulations on the expiry of their current licence; on the date a refund of licence duty is claimed; or as a result of a change of keeper (in the case of subsequent unlicensed vehicles). Vehicles which are unlicensed at the commencement of the scheme and which are caught on the public road any time afterwards will also become liable to the SORN regulations.

  4. In short, after 1 December 2002, every vehicle in Northern Ireland which is taxed on or after that date must either be relicensed or have a declaration in force stating that it will not be used or kept on a public road. Special arrangements will apply to vehicles in Trade (see note 10).

  5. When a tax disc expires there will no longer be the option to do nothing. The disc must be renewed or a SORN declaration made if the vehicle is being kept off the road.

  6. If a refund of the licence duty is requested, full details of the reason for the refund will be required and a SORN declaration must be made if the reason for the refund is because the vehicle is being kept off the road.

  7. If a vehicle is disposed of or sold, full details must be notified immediately to DVLNI.

  8. If an unlicensed vehicle is acquired after 1 December 2002 and it is not being relicensed, as it will be kept off the road, a SORN declaration must be made. This applies even if the previous keeper has made a SORN declaration, as a declaration does not transfer with the vehicle.

  9. A SORN declaration is valid for up to 12 months or until the vehicle is disposed of or sold. The vehicle must be licensed if it is going to be brought back onto the road before the 12 months elapses.

  10. While the SORN regulations state that Traders must make a SORN declaration on any unlicensed vehicle in their possession within 3 months of acquisition, a "Trade Easement" will be applied which means that Traders will not have to make a SORN declaration on vehicles in Trade, provided that DVLNI is notified immediately of disposal, and is given full details of the date and to whom the vehicle has been disposed; and, on receipt of a schedule, listing vehicles still recorded as being in a Traders possession and on which SORN has not been declared, the Trader replies immediately confirming keepership.

  11. Further information will be available in leaflets to be issued with all new-style Licence Renewal reminders, for one year from commencement of the scheme. Traders will also be issued with information leaflets just before commencement of the scheme. Additional information, if required, can be obtained from Driver and Vehicle Licensing Central Office, Coleraine, or from any of the 8 Local Vehicle Licensing Offices.

  12. Driver and Vehicle Licensing Northern Ireland (DVLNI) was launched as an Executive Agency of DOE in 1993. The Agency is responsible for licensing drivers, the registration and licensing of vehicles, and the collection and enforcement of vehicle duty (motor tax). The Agency employs 380 staff and operates from its headquarters at County Hall, Coleraine and from 8 offices throughout Northern Ireland.

    13. For further information contact;
    Paddy Murphy,
    DOE Press Office,
    Tel 028 9054 0014.

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