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provisions of Section 176 of the Income Tax Act, 1967.
Arising out of the discussions and in accordance
with the points of agreement reached, the following
is the proposed arrangement.
1. The Commissioners will supply special forms for
completion by solicitors. (Draft copies enclosed).
2. The forms will be contained in a book, four forms
to each page, with blank sheets interleaved.
3. Carbon sheets will be supplied with each book so
that entries will be recorded in duplicate — the
blank sheets providing a record for the solicitors'
purposes.
4. The forms will be completed for all payments by
solicitors to clients in respect of money or value,
or of profits or gains, arising from any of the
sources mentioned in the Income Tax Acts, paid
without deduction of tax.
5. One form will be completed for each payment.
6. In any case of an especially delicate nature where
disclosure could have adverse social consequences
(such as a secret maintenance payment) the pay-
ment may be withheld from the form if the
solicitor concerned consults with the President of
the Society and through him with the Com-
missioners at this Office.
7. Where surplus deposit interest arising on client
accounts is appropriated and transferred to the
solicitor's accounts, the transfer will be treated as
payment and a form will be completed in respect
thereof.
8. The books of forms will be in the hands of
solicitors before the end of March, 1975, so that
forms can be completed in respect of all payments
made as on and from April 6, 1975.
9. After the end of the year 1975/76, and after the
end of each subsequent year, the inspector of taxes
will issue to each solicitor or firm a request on
form 8-2 for the return to him of all the completed
forms.
10. The completed forms will be detached from the
book and forwarded to the inspector together
with the completed form 8-2. (If no payments had
been made in the particular year, it will be
sufficient to complete the form 8-2 showing
thereon that no payments had been made and
forward it to the inspector).
As requested by the Society's representatives in the
discussions, the Commissioners will arrange that
queries arising out of the completed forms will initially
not be directed to the solicitors. Any such queries
kill be referred by the inspectors of taxes in the first
instance to this office for examination. The Commis-
sioners will then consult with your Society as to the
procedures to be adopted.
As part of the arrangement the Commissioners
would not institute proceedings against any solicitor
complying with the arrangement, in respect of the
penalties provided by law for failure to make the
requisite returns under the aforesaid Section 176 for
the year 1974/75 or earlier years.
It is understood that Council of your Society has
accepted the proposed arrangement in principle and
that final acceptance thereof is subject to confirmation
by the Council on receipt of this letter. I am to request
you to advise the Commissioners as soon as possible
of final acceptance of the arrangement in the terms
outlined.
Yours faithfully,
G. A. Walsh.
James J. Ivers, Esq.,
Director General.
Forms 8-2 (Solicitor)
1. This book contains copies of forms 8-2 (Solicitor)
—4 forms to each page—interleaved with blank
sheets.
2. The forms are to be completed for all payments
made by solicitors to their clients in respect of
money or value or of profits or gains araising from
from any of the sources mentioned in the Income
Tax Acts.
3. One form should be completed for each payment.
4. The name and address of the payee should be
given in each case.
5. Where surplus deposit interest is transferred from
a client account to the Solicitor's/Firm's account,
the transfer should be treated as a payment to the
Solicitor/Firm and a form completed in respect
thereof.
6. By using the carbon paper supplied the blank
sheets will provide for the solicitor's own uses a
record of all payments.
7. After the end of the income tax year the inspector
of taxes will request (on form 8-2) the return to him
of all completed forms 8-2 (Solicitor) in respect of
that year.
8. The completed forms should be detached and
returned to the inspector together with the com-
pleted form 8-2. (If no payments had been made in
the year this should be recorded on the form 8-2
which should then be returned to the inspector).
9. Further copies of this book may be had on request
from the inspector of taxes.
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