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GAZETTE
N W
JUNE 1992
E
S
Taxation Committee attacks
Draconian Measures in Finance Bill
In a recent press statement the
Taxation Committee criticised
measures in the Finance Bill 1992
and called on the Minister for
Finance to reconsider them.
The text of the statement was as
follows:
" The Taxation Committee of the
Law Society welcomes the decision
by the Minister for Finance, Bertie
Ahern TD, to defer for one year the
provision in the Finance Bill which
would require companies and
professionals to give information to
the Revenue Commissioners about
the transactions of third parties, but
calls on him to reconsider this and
other provisions in the Bill which
give swingeing and sweeping powers
to the Revenue Commissioners.
" The self-assessment system was
introduced with the cooperation of
professional bodies with the
intention of alleviating the burden
and cost to the compliant taxpayer
in accordance with the Taxpayers
Charter. It is clear that without this
cooperation the system would not
operate and it has been admitted
that over 90% of personal taxpayers
have submitted their returns and
paid their due tax.
" The Law Society is in favour of
measures aimed at eliminating tax
evasion. It is clear, however, that the
compliant taxpayer and his advisers
will bear the brunt of this
legislation. This makes nonsense of
the self-assessment system and places
an insurmountable obstacle in the
path of professional cooperation.
" I t was noted in the newspapers of
the weekend of 9/10 May that
multinational and foreign companies
which had set up business in Ireland
were beginning to view with alarm
recent developments in revenue law
and practice in this State.
Professional advisers must now warn
their business clients that the
business climate in this country is
becoming oppressive and anti-
enterprise. Responsibility for this lies
solely with the Government as they
appear to accept, without question,
Department of Finance and Revenue
authority initiatives, in spite of the
warnings by responsible business and
professional people.
"As identified in the Culliton report,
it is small business on which much
of the future economic development
of this country depends. It has come
to the attention of the Law Society
that many small businesses may be
intimidated into increasing their tax
liability following a Revenue audit.
The Law Society views this
development with alarm. The
businessman may be forced to make
a commercial decision balancing the
additional amount "claimed" by the
Inspector against the loss of profits
and other costs involved in defending
his position. The Revenue
Commissioners are aware of this and,
in some instances, use it to their
advantage as they are not subject to
the same commercial constraints.
"Against this background, the
Finance Bill introduces swingeing
and sweeping new powers for the
Revenue Commissioners. Due to the
unprecedented scale and severity of
these measures, the Government has
been requested to postpone their
implementation, encompassing as
they do:
1. Powers reserved to an authorised
officer of the Revenue
Commissioners to arrest without
warrant in relation to VAT. (S. 189)
2. Powers reserved to a member of
the Garda Siochana accompanied
by an authorised officer, to arrest
any person without warrant for
obstructing the authorised officer.
(S. 236)
3. Powers reserved to an authorised
officer to enter business premises
and to search for and seize
documents, without warrant. (S.
232)
4.- Powers reserved to an authorised
officer, on a warrant, or in certain
circumstances without warrant, to
enter the home of the taxpayer
and to search for and seize
documents. (S. 232)
5. Requirements on professional
advisers to voluntarily surrender
confidential information relating
to clients (now deferred for one
year). (S. 226)
6. Many other powers of physical
and legal enforcement
unacceptable in a democratic
society.
" The Law Society and other bodies
have offered assistance and
cooperation to the Minister, the
Department of Finance, and the
Revenue Commissioners in
considering these provisions. This
offer received no response.
"These provisions in the Finance Bill
are incompatible with an orderly and
democratic society. The Minister
should think again."
•
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