May 12, 2017

Ensure vehicle licence tax is paid up before purchasing

Persons purchasing previously owned vehicles are being encouraged to make sure that the licence tax for these vehicles has been paid up before handing over their money.

Purchasers who fail to do this are unlikely to receive a waiver on outstanding sums from the Inland Revenue Department (IRD), even if the vehicle has already changed hands. The IRD will also not record the change of ownership unless the outstanding vehicle tax is paid.

Comptroller of the IRD Kelvin Pompey said that on several occasions persons who had bought used vehicles turned up at the department weeks, or even months later, to register the change of ownership, only to find out that the previous owner had not paid the licence tax.

“Before they pass cash they should come to the department and do the check to see if there are any outstanding fees, because once there are outstanding taxes, we let the buyer know,” Pompey explained.

He stressed that the department does not get involved and persons normally have to work it out between themselves if money is passed before they attempt to do the change of ownership.

Pompey said that over the years the IRD has seen an increase in compliance with motor vehicle licence tax requirements and driver’s licence payments.

“The police have been much more vigilant and of course, the sticker system helps, because at a glance, they can tell what vehicle has not been licensed,” said Pompey, who is encouraging police officers to be more robust in asking persons to produce their driver’s licences.

“We have been working along with the police to get the levels up and I think the compliance level is quite good,” said Pompey.