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GAZETTE
DECEMBER 1991
a professional falls foul of the
surcharge provisions or the
negligence provisions, his only
appeal is to the High Court. This
surely is against all considerations
of justice, particularly as there is
available, in other taxes, a much
more convenient and easily
acceptable form of appeal, to the
Appeal Commissioners. This must
be afforded to the sufferers in
stamp duty as well.
Because of the uncertainty relating
to the words "interested or con-
cerned in or about" an instrument
for stamp duty purposes, this type
of protection and discharge must
be given to the professional.
The professional, for his own
protection, must inform the tax-
payer at the earliest stage of a
transaction, of the duty to disclose
and the problems of under-
valuation. This must be forcibly
brought to his attention in the initial
letter, placing the obligation firmly
on the shoulders of the client and
of his valuer in the case of the
surcharges.
The following are suggested as
approriate paragraphs or clauses to
be incorporated in that letter:
Duty to Disclose
1. Your attention is drawn to the
provisions of Finance Act, 1991
relating to the duty to disclose
for all purposes of stamp duty.
This duty is incumbent on you
and in so far as the Revenue may
require information relating to
the transaction you are obliged
to supply all the information in
your possession. Failure to make
full disclosure, particularly when
requested, could result in your
being liable for the following:
(a) A penalty of £1,000,
together with
(b) the difference in stamp duty
occasioned by the failure to
disclose (in the case of
fraud, this penalty is
doubled).
Undervaluation
2. Your attention is, (also) drawn to
the provisions of [Finance Act,
1989 and Finance Act, 1991 (as
appropriate)] in relation to the
valuation of property for [gift
tax, inheritance tax and stamp
duty purposes]. The conse-
quences of undervaluation, and
it does not require a great deal
of undervaluation to bring this
about, can have a serious effect
on the tax. The surcharge
penalty, for stamp duty pur-
poses, can amount to double the
stamp duty, and for gift tax and
inheritance tax, can amount to
100% of that liability. In addition,
it may be possible to seek
further penalties under the
failure to disclose provisions
referred to above.
•
A Seasonal Tale
"Once upon a time, in a Place
called Blackhall, there was a large
old house. One of its many rooms
was used as a creche for
youngsters who passed the time
eating ice-cream and drinking soda
pop. The youngsters appeared
content with their lot and the
counsellors who owned the house
were happy that the youngsters
seemed to be enjoying themselves.
Things continued in this fashion
until eventually the youngsters tired
of their lotus eating and became
curious, as all young people do,
about the world around them. The
youngsters started wandering the
corridors beyond the confines of
Room 4 and discovered a whole
new universe full of interest and
(relative) excitement. Most exciting
of all was the Council chamber
which seemed to be just like their
own creche only bigger and better
and brighter. No sooner had they
reached this Aladdin's Cave than
they began to wonder how they
had managed to stay away for so
long..."
1991 ended on a high note for the
Younger Members Committee with
the re-election to the Council of
James McGuill
and
Eva Tobin,
its
outgoing Chairman (which is not
Fast & Efficient
Taxation of Costs
BILLS OF COST DRAWN AND
LODGED FOR TAXATION
WITHIN TWO WEEKS.
SEND YOUR FILE TO.-
LORD & CO.
Legal Cost Accountants
61 Merrion Square,
Dublin 2.
Phone 616729/616996
to say that there any shrinking
violets among its number). Bet-
ween the two of them they
amassed 2319 votes and finished
in fourth and fifth place respect-
ively in the poll.
New Chairman,
Michael Lanigan
has his work cut out to emulate the
success of E.T. but with the support
and co-operation of his colleagues
a very full year is already being
planned.
Among the new faces on the YMC
is incoming Vice-Chairman
John
Shaw,
elected to Council at his first
attempt (and without ever being to
the crechel).
One of the highlights of the 1992
Programme is the Conference at
Newcastle, Co. Down on 8/10 May
1992 being organised by the
Northern Ireland Young Solicitors
Group in association with the
Society for Young Solicitors and the
YMC. (Watch this space for further
details).
In fact, all going well, there
probably won't be any time left for
ice-cream and soda popl Ah well,
success has its price...
John Campbell
YMC
(Younger Members News)
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