The Gazette 1992

GAZETTE

N W

JUNE 1992

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."

•

YOUR WILL

can help

Irish Wheelchair Association

For donations and further particulars contact:

Miriam McNally

Irish Wheelchair Association

Áras Chuchulain, Blackheath Drive,

Clontarf Dublin 3. Tel: 338241

IRISH

WHEELCHAIR

ASSOCIATION

170