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Jental nature.
In 1784 Pitt sought to raise a loan
and new taxes and in introducing his budget stated
that he found himself at a disadvantage " in bringing
up the rear of the business when the most palatable
and popular taxes have long since been exhausted."
He proposed taxes on servants, retail shops, gloves,
pawnbrokers, salt and an additional tax on post
horses. Strong criticism of a number of these taxes
was expressed in the House of Commons, and it
is recorded in
Hansard
that a back-bencher suggested
a tax on attorneys instead of the shop tax. This idea
proved popular. Under the statute 25 Geo. Ill,
cap. 80, passed in the following year, a duty of £5
was imposed on London solicitors and £3 in the
case of solicitors practising elsewhere. This statute
was enacted before the Union and did not extend
to Ireland, but in 1816 when England had been
exhausted by the Napoleonic wars the Government
decided to increase the tax and to extend it to Irish
solicitors.
The records of the Society show that ever since
1841
the continuation of this duty has been the
subject of a series of unavailing protests by the
Council. On one occasion Mr. Gladstone admitted
the injustice of the tax, but unfortunately the interests
of Irish solicitors in those days were never very
carefully considered by those in office, and nothing
was done.
It is hoped that our Government will
now remedy this long-standing injustice to the
profession. There are cogent reasons why the duty
should be abolished.
In the whole range of the
special taxation of a class there is no other instance
equalling the taxation of the solicitors profession.
One class may be taxed, as solicitors are, on articles
of apprenticeship ; another class may be taxed on
admission to their calling ;
and another class in
respect of the carrying on of their calling. Solicitors
alone are subject to all three kinds of taxation. An
exclusive right to practise their profession is con
ferred on barristers and members of the medical
profession.
The emoluments and opportunities
of remunerative employment of members of these
professions arc superior to those of solicitors, yet
they are not subjected to payment of an annual tax
as are solicitors.
The Council's memorandum is at present in the
hands of the Revenue Commissioners and of the
Department of Finance, and it is hoped that the
representations of the Council will be successful.
New Stamp Duties
BY Finance Resolution (No. 2), 1947, which was
passed by Dail Eireann on October ijth, the rate
of stamp duty chargeable on conveyances and
transfers of lands to Irish citizens and certain other
specified persons and bodies was raised from i per
cent, to 5 per cent., and a new duty of 25 per cent.
on the consideration was imposed in respect of the
conveyance of lands and houses to persons other
than Irish citizens.
I do not intend to comment
on the financial policy underlying the imposition of
these duties except to say that they'are a very serious
imposition and will cause great hardship on pur
chasers of property.
It may be that the exigencies
of the country's finances require this additional
revenue, but it seems that purchasers of land and
houses are to be called upon to contribute to an
extent for which, as far as I know, there is no pre
cedent in any other country. However, I do not
wish to criticise the policy underlying these new
duties except to say that it is my earnest hope that
they will be temporary and that the duties will be
repealed and the old rates reinstated at the earliest
possible opportunity.
When the
terms of the
Financial Resolution were announced, representatives
from the Council immediately sought an interview
with the Chairman of the Revenue Commissioners
and suggested certain amendments, a number of
which were adopted. The most important of these
amendments which were adopted are as follows :—
The Minister has agreed that in any case in which a
contract was completed before 29th October, and
in respect of which notice in writing is given to the
Revenue Commissioners before ist December, the
old rate of duty will stand.
The Council also
succeeded in securing the insertion of a clause
exempting certain voluntary dispositions from the
operation of the new duties,
i.e., dispositions or
transfers from a father to a son or other lineal
descendant, or to a brother or sister, or lineal des
cendant of a brother or sister. The Council suggested
that transfers from a disponer in favour of a father
or mother or husband or wife should be exempt,
but this suggestion was not adopted. The terms of
Section 13 (7)
(b)
which imposed a penalty of 25 per
cent, of the consideration for failure to stamp, what
I may call a " foreign conveyance " within thirty
days are very formidable, particularly in the section
as originally drafted, under which the Revenue
Commissioners would have no discretion to mitigate
the penalty after the expiration of three months.
The Council, however, succeeded in securing the
adoption of a clause giving power to the Revenue
Commissioners to mitigate this penalty without
any limitation as to time.
Increases in
Costs
SINCE the date of the last Annual Report of the Coun
cil a memorandum was presented on behalf of the
Council
to
the various Committees
regulating
solicitors' costs, asking for an increase of 33-1 per
cent, on the amount of the existing remuneration.
Protracted negotiations
followed between
the
Council's representatives and the various com-