The Gazette 1990

GAZETTE

nua

february

1990

Barristers' professional

indemnity insurance

As and from 1st May 1990 all

members of the Law Library will be

required to have Professional In-

demnity Insurance for a minimum

prescribed amount, initially to be a

minimum of £100,000

The Code of Conduct for the Bar

of Ireland has been amended

accordingly, by the insertion of a

new paragraph (numbered 2.13) as

follows:

"Every practising barrister is

obliged to have professional

indemnity insurance for a mini-

mum amount, which amount

shall be prescribed from time to

time by the Bar Council. It shall

be professional misconduct for

any barrister who is not so

insured to advise on the law,

draft legal documents or

pleadings, or act as an advocate,

for a fee.

The scheme for professional

insurance arranged by the Bar

Council shall not be available for

those who are not members of

the Law Library. Those who are

not members of the Law Library

and who intend to practise must

' satisfy the Bar Council that they

have appropriate insurance in

force".

*With reference to the second

paragraph, virtually all practising

barristers, whether Dublin-based or

on Circuit, are members of the Law

Library and therefore will be part of

this new compulsory insurance

scheme. All barristers listed in the

Society's 1990 Law Directory are

(as of November 1989) members of

the Law Library.

V A L UE A D D E D T AX

S T A T E M E NT OF P R A C T I C E

(VAT/1/90)

4th S C H E D U L E A N D O T H E R

S E R V I C E S

R E C E I V ED F R OM A B R O AD

The Revenue Commissioners

have prepared an explanatory

leaflet in regard to the VAT liability

of recipients of certain services

received from abroad. The leaflet

describes the tax liability of persons

in respect of such services and

outlines the requirements with

regard to registration and payment

of tax. Copies of the leaflet and

further information are available

from -

The Office of the Revenue

Commissioners (VAT Branch)

Castle House,

South Great George's Street,

Dublin 2,

(Tel. 01-792777 Extns. 2440,

2441, 2442, 2443)

or from any local Tax Office.

2. Any person who incurs a VAT

liability in respect of services

received from abroad and who fails

to notify the local Tax Office of the

liability or who fails to comply with

the obligations in regard to regis-

tration and payment of tax will be

subject to the pursuit of the tax due

with any attendant interest and

penalties under the statutory

powers which are at the disposal of

the Revenue Commissioners. Any

person who has not discharged a

liability in respect of the payment

of VAT on services received from

abroad in the past should contact

the local tax office with a view to

regularising the position. The

Revenue Commissioners will deal

constructively with such cases.

Dublin Castle,

Dublin 2.

If any problems arise in relation to the above

please contact the Secretary of the Taxation

Committee, Ms. Eileen Brazil. One instance

would be Irish solicitors,

involved

extracting an English Grant of Probate,

would pay the English solicitors costs, say

£200 - net of VAT. The Irish solicitors

should bill his client for that £200 together

with Irish VAT at 23%, total

£246.00.

•

INHER I TANCE TAX

Policies issued under Section 60

F.A. 1985. As amended by

Secion 84 F.A. 1989.

WARNING

Proceeds of policies of life

assurance issued under the above

March, 1990.

sections are exempt from inherit-

ance tax when they are payable in

connection with the death of the

life assured.

From on and after the 30th May,

1985, it became the practice to

issue two contingent policies in the

case of a husband and wife, each

life insured to survive the other.

Since the 24th May, 1989, the

same cover was available under a

joint life and life of survivor policy,

whereby the proceeds became pay-

able on the death of the survivor,

who was then deemed to be the

disponer of the proceeds.

The

standard Will,

and that re-

commended by the Law Society, in

the case of a husband and wife

contains a fixed period (28 days/30

days) survivorship clause. In the

event of that clause becoming

effective by the surviving spouse

dying within the period, the ex-

emption benefit of a Section 60

Policy is lost because the claims for

tax will arise under the Will of the

first spouse to die, as disponer,

while the proceeds are payable on

the death of the survivor, the deem-

ed insured and disponer in respect

of those proceeds - the exempting

connection is broken.

For example:- H & W by their

identical Wills leave everything to

each other provided the other

survives 30 days with a giftover to

their only child, C absolutely. They

put in place a joint (or contingent)

policy under the provisions of

Section 60 F.A. 1985 as amended

to cover the tax exposure on the

death of the survivor. They are

involved in a car accident. H dies on

the 28th day of February and W

dies on the 28th day of March.

H's estate = £350,000

W's estate = Nil

Policy Cover = £74,000

By reason of the death within 30

days, the provisions of

H's

Will take

effect and the proceeds became

payable on W's death and pass

under

her

Will. There is, accord-

ingly, no exemption.

Inherits:-

from H £350,000 Tax £74,000

from W £74,000 Tax £40,700

C has lost £40,700 by reason of

the events.

(Contd. on p.66)