The Gazette 1992

GAZETTE

JULY/AUGUST 1992

(a) to get a direction as to whether

the particular transaction gives rise

to a charge for VAT, and

(b) to ascertain whether a refund

will be forthcoming without

problems if payment is made on foot

of that invoice.

Accordingly, the Committee

recommends that practitioners

should, in a situation where they are

in any way doubtful, contact the

Inspector of Taxes as outlined. The

Committee has been assured of

prompt attention on all such

enquiries.

Conveyancing

Committee

Derelict Sites Act, 1990

The Professional Purposes

Committee wishes to bring to the

notice of the profession the

provisions of Section 29 of the above

Act.

Sub-section (1) provides that any

person who is the occupier of any

structure or land receiving rent

(whether for himself or for another)

must give particulars to the Local

Authority including the name and

address of every person who to his

knowledge has any estate or interest

in the property.

Sub-Section (2) provides that where

property has been entered on the

case of a sale, it is the duty of both

vendor and purchaser to notify the

Local Authority of the transfer not

later than four weeks after the date

of the transfer.

Under Sub-Section (3) where a

person obtains a derelict site by will

or on intestacy the obligation is

placed both on the personal

representative and the beneficiary to

notify the local Authority as to the

ownership, not later than six months

after the date of the transfer.

Section (8) of the Act provides that

the Local Authority shall keep a '

their area designated as Derelict Sites

and this register shall be opened for

inspection at the Local Authority

Offices during office hours.

Professional Purposes

Committee

Retention Tax Deduction from

Gross Fees inclusive of VAT

An exchange of correspondence has

taken place between the Law Society

Taxation Committee and the Revenue

Commissioners on the retention tax

deduction from gross fees inclusive

of VAT.

The chairman of the Law Society

Taxation Committee,

Laurence

Shields,

wrote on 28 April, 1992 to

Dr. Don Thornhill,

Assistant

Secretary, Capital Taxes Branch, as

follows:

" I refer to our recent meeting when

we discussed a number of matters

including the Retention Tax on

Professional Fees. You will recall that

at the meeting we expressed concern

that no allowance was given until the

following tax year for the deduction

which places practitioners at a

considerable disadvantage. You

indicated that in the present tight

financial circumstances there was

unlikely to be any change in the

current situation.

There is, however, one matter which

is of concern in relation to the

present operation of Retention Tax.

The Law Society is concerned about

the practice whereby Retention Thx is

deducted from the gross fees

inclusive of all outlays and VAT. It is

submitted that the original intention

was for the Retention Tax to be

deducted from the fee element only

of all costs and outlays due to

solicitors in respect of work done for

and on behalf of those bodies or

institutions who are obliged to apply

the Retention Tax.

We would be grateful, accordingly, if

you would give serious consideration

to amending the current practice."

The following response (dated 29

May) was received from Dr.

Thornhill:

" I refer to your letter of 28 April,

1992 regarding the retention tax

deducation from gross fees inclusive

of VAT. I apologise for the delay in

replying but I have been heavily

involved with the 1992 Finance

Bill.

The practice in relation to the

retention tax is that VAT charged by

a solicitor on his or her own fee

should not be included in the total

on which the retention tax is

calculated and clear instructions have

issued to accountable persons on

that point.

The question of outlay is not within

my area. This aspect of your letter is

being dealt with by Mr. Eddie

Dwyer, Taxes Secretariat, Dublin

Castle, who will be in touch with

you shortly."

Taxation

Committee

Gifts and Inheritances Between

Spouses

Since publication of the Practice

Note in the June 1991 issue of the

Gazette

it has come to the attention

of the Taxation and Conveyancing

Committees that the Revenue

Commissioners take the view that

notwithstanding the provisions of

Section 127 of the Finance Act, 1990

there are circumstances where a

charge to CAT may arise in a gift

between spouses, or as a result of a

prior gift between spouses.

Section 8 of the Capital Acquisitions

Tax Act, 1976 provides where a

donee takes a gift from a disponer

and within three years a further

disposal of the gift takes place the

beneficiary of the second gift is

deemed to take the gift from the

original disponer.

For example, if a parent gives

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