IIW History 1990-2015

Swiss franc plus the possible imposition of VAT which, in total, required a study of all the possible scenarios and consequences of IIW’s tax position. 8 Bramat did inform the Board of Directors (formerly Executive Council) that he already had information from the French taxation authorities, to be confirmed in writing, that IIW would be authorised to recover VAT for the next financial year. 9 Braithwaite’s first reaction to this was to introduce a much harder line regarding the payment of membership fees, including possible expulsion from IIW, since this was a major factor in the continuing deficits that IIW faced. Making provision for, and having to set funds aside for, VAT payments to the French Government also compounded the situation further. Despite these issues the light at the end of the tunnel appeared to be getting brighter. Braithwaite now felt more comfortable as Treasurer since he was now in a position to be a bearer of good tidings. At the General Assembly (formerly Governing Council) in 1997 he was to report that, following the record deficit in 1995, the accounts for 1996 had actually shown a small surplus of CHF 16 840. He then drew attention to the fact that making a loss was normal – the organisation had never been really profitable, at least over the last 15 years. He demonstrated that IIW had made continuous losses that had reduced its reserves from around CHF 300 000 in 1981 to approximately CHF 40 000 by 1995. As a consequence, the reserve funds were now considered to be insufficient to maintain the services of the Secretariat for more than a few months. 10 This needed to be addressed as quickly as possible and Braithwaite made an open pledge that by the year 2000 the reserves would be returned to where they were previously. This proved not to be an idle promise. After changing its currency to French francs (FRF) in 1998, IIW achieved a remarkable turn-around in its financial situation by amassing a total of FRF 690 000 in reserve at the end of 1999 largely due to payment of arrears by a number of members, including Russia, which had successfully disputed the level of fees required. Most of this surplus had then been put to one side in the eventuality, or otherwise, of having to pay VAT. The thought of having to pay such a tax was anathema to Braithwaite and resulted in some differences with Bramat who still had extreme difficulty in providing a clear indication of what the current situation was on the payment of French VAT. 11 Tiring of inaction, Braithwaite was to stress at the Board of Directors meeting in Hamburg in September 1998 that ‘if the French Government decided that all the money provided in the reserves was owed to them, then IIWwould, in fact, be technically bankrupt’. 12 He then indicated that it was his expectation that the Institut de Soudure, as the supplier of IIW Secretariat services, should act as guarantor if such a situation did arise. Further, he added that IIW would be seeking an assurance from the Institut de Soudure that they would

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