The Gazette 1946-49

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-