The Gazette 1992

GAZETTE

N W

SEPTEMBER 1992

Solicitors Vow to Protect

Client Confidentiality

A Special General Meeting held in

the Law Society on Wednesday, 22

July, 1992 last, attended by some 300

solicitors, resolved not to co-operate

with Part VII of the Finance Act,

1992 because the legislation erodes

the essential confidentiality of the

solicitor/client relationship, is bad

for commerce, interferes with the

public's right to obtain independent

legal advice and is unworkable.

The following resolution was

unanimously passed at the meeting:

"Th a t, with a view to preserving the

independence of the legal profession

and preventing it becoming an

instrument of Government, this

Special General Meeting opposes

totally the provisions of Part VII of

the Finance Act, 1992. The view of

the members of the solicitors'

profession is that a policy of total

non co-operation in relation thereto

is justified; that this view be

conveyed to the Revenue

Commissioners and that the Council

of the Law Society take all possible

steps to oppose and render

inoperable the said provisions". The

motion was proposed by

Seamus

Brennan

(Kilkenny) and seconded by

Peter Reilly

(Tipperary).

The meeting debated strategies for

opposing the legislation, with many

speakers, for example,

Enya Egan

(Castlebar),

John Kelly,

(Cavan),

canvassing support for an immediate

constitutional class action to seek to

have the legislation struck down.

Other speakers, amongst them,

Barry St. J. Galvin,

(Cork) feared

that a constitutional action might

be too risky a strategy, while

others, including

Donal Binchy,

(Tipperary) favoured a constitutional

action as a last resort in the event

that negotiation and persuasion

failed.

Frank Gleeson

(Thurles) and

Denis

Larkin

(Mullingar) were among the

speakers who emphasised that it was

extremely important for the Society

to mount an effective public relations

campaign against the provisions in

the Bill as support from the public

would be essential. A view that the

Law Society should be prepared to

support - financially if necessary -

any solicitor who came into conflict

with the Revenue Commissioners

for failing to comply with the

legislation, was put forward by a

number of speakers including

Dan

Gormley

(Monaghan) and

Ciaran

Keyes

(Galway).

Above all, it was the issue of client

confidentiality which most concerned

those attending the meeting. This

was addressed by many speakers,

including

Robert Pierse

(Listowel)

who said that the legislation

threatened the very core of the

integrity and confidentiality of the

solicitor/client relationship.

Confidentiality was a central tenet of

the profession and compliance with

the legislation would render members

of the profession "unpaid

informers", he declared.

Press Statement

Following the unanimous support

expressed at the Special General

Meeting, the Thxation Committee of

the Law Society issued a statement

to the media outlining the terms of

the resolution and making the

following points:

"Pa rt VII of the Finance Act, 1992

introduces mandatory reporting

obligations on persons carrying on a

business, profession or trade. It

means that every solicitor will have

to provide detailed information on

a wide range of transactions

including:

(a) All payments in excess of £500 in

aggregate in any one year made

on a solicitor's behalf or on

behalf of a client of that solicitor

to any provider of services.

(b) Any monies in excess of £500 in

aggregate received by a solicitor

on behalf of others which may or

may not be taxable (including

compensation payments).

premises.

" I n objecting to these provisions, the

Law Society wishes to make it clear

that solicitors have no objection to

making these returns on their own

behalf. However, solicitors object in

the strongest possible terms to the

provisions which oblige them to

inform the Revenue of transactions

involving their clients' affairs. In the

vast majority of cases the Revenue

will already have received this

information from clients through the

self assessment system. The

duplication of cost in complying

with these provisions penalises the

honest taxpayer. Furthermore, they

erode the essential confidentiality on

which the solicitor/client relationship

is based. It is a constitutional right

for people to obtain independent and

confidential legal advice.

"Members of the Law Society also

believe that the provisions of Part

VII of the Finance Act are anti-

business. The reporting obligations

will impose a huge administrative

burden on all Irish businesses who

will have to install systems to cope

with the volume of record-keeping

and form-filling required. It should

be remembered that the vast

majority of businesses in Ireland

are small. The administrative cost

of complying with the legislation

will have to be passed to the

consumer resulting in higher prices

and the erosion of Irish

competitiveness.

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