The Gazette 1972

Proceedings of the Council THE SOCIETY 20th JULY 1972

with the client that the solicitor will be indemnified by deduction of all payments made to the client in respect of his liability for tax (including sur tax) leaving the client to recover such amount as he can on a certificate in Form 18 if he is not liable to tax. These provisions apply where client monies are kept on separate deposit accounts for different clients, and also where the solicitor expects to retain the money for more than the normal period. As regards in and out transactions in connection with sales where the money is kept for periods of a month or six weeks the normal practice is to keep the money in general client account. If this money is in a general deposit account and the solicitor gets the benefit of the interest he must pay the tax himself. The standing rule of the Council is that the solicitor should not retain monies improperly or unduly for the purpose of earning interest and if this rule is not observed the solicitor is accountable to the client for the interest earned. Interest on monies lodged in Courts A member wrote to the Society and complained of the present situation where no interest is paid on monies lodged in Court. The Council noted that interest is paid in England on monies lodged in Court in similar circumstances under the provisions of the Administra- tion of the Justice Act, 1965, Sections 6 and 7, and decided that these provisions should be brought to the attention of the Committee on Court Practice and Procedure with a request that they consider the advisa- bility of similar legislation being passed in Ireland. Standard Conditions of Sale A member wrote to the Society and suggested that Clause 3 of the Society's standard conditions of sale should be altered. Clause 3 provides as follows: "If from any cause whatever other than the wilful default of the vendor the purchase shall not be completed on that day, the purchaser shall pay to the vendor interest at the rate specified in the said memorandum on the balance of the purchase money remaining unpaid from the closing date up to the date of the actual comple- tion". It was suggested that the word "wilful" should be deleted. On a report from the committee the Coun- cil decided that in die next edition of the Conditions of Sale the word "wilful" should be deleted. It was also decided that the format of the memorandum to the Conditions of Sale should be altered to provide more space for the names of the parties. Michael Moran Michael Moran, a solicitor's apprentice and son of Michael Moran, T.D., former Minister for Justice, was tragically killed in an accident. At a meeting of the Council held on the 16th August 1972 the following resolution was passed : "The President and Council of the Society tender their deep sympathy to Michael Moran and his family on the tragic death of his son Michael."

The President in the chair, also present: Walter Beatty, Bruce St. J. Blake, John Carrigan, Anthony E. Collins, Laurence Cullen, Gerard M. Doyle, Christopher Hogan, Michael P. Houlihan, Thomas Jackson Jnr., John B. Jermyn, Francis J. Lanigan, Eunan McCarron, Patrick J. McEllin, Brendan A. McGrath, John Maher, Senator John J. Nash, Patrick Noonan, T. V. O'Connor, Patrick F. O'Donnell, William A. Osborne, Peter D. M. Prentice, Moya Quinlan, Robert McD. Taylor and In reply to an inquiry from a member the Council stated that there was no objection to the use of window envelopes by solicitors. Solicitor executor A member became a solicitor after the date of a will appointing him as executor. As the will contains no charging clause he sought the Council's views. The Council on a report from a committee said that the will speaks from death and the executor will be precluded from charging any costs. Member could re- nounce his rights and in these circumstances if he is appointed to act for the personal representative he can charge professional fees or alternatively if the residuary legatee is competent and properly advised he may con- sent to the member acting as executor and making the usual professional charges. Income tax and monies received for clients The Council considered the liability of a solicitor to account to the Revenue Commissioners for income tax earned on monies received for clients and the liability of solicitors to personal assessments. The Council has advised members that they should not comply with notices received under Section 176 of the Income Tax Act, 1967, unless the client so directs and that they should inform the client that any tax charged on the solicitor will be deducted from the interest or income paid to the client. The Council considered the position of solicitor who may already have paid out substantial sums to clients and who may now be liable to back assessments. In the view of the Council the following alternatives are open to solicitors who hold clients' monies. (1) They may obtain the clients' consent to disclose the ownership of monies held on deposit receipt for them. (2) With the consent of the client they may place the money on deposit receipt in the joint names of the client and the solicitor. (3) If the client wants to avoid disclosure of his iden- tity and will not agree to indemnify the solicitor the solicitor may refuse to place the money on deposit receipt and keep it on current client account. (4) If the client wants to have the money on deposit receipt to earn interest and refuses to allow his identity to be disclosed the solicitor may arrange by agreement Ralph J. Walker. Window envelopes

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