The Gazette 1982

INCORPORATED LAW SOCIETY OF IRELAND GAZETTE Vol. 76. No.8

October 1982

Comment...

In this issue...

A new era — the V.A.T. era — is upon us. By now, hopefully, the initial trauma has passed but, as yet, insufficient experience has been gained of the problems of administering the system. Several things have, however, become clear and, in some instances, all too clear. At the time of writing, it is reported by the V.A.T. authorities that, of the Dublin solicitors, only about fifty per cent have as yet registered themselves for V.A.T. To postulate that fifty per cent of Dublin solicitors have a gross turnover of less than £ 15,000 per annum is to draw the long bow and the only tenable explanation has to be that a number of heads are still buried in the sand. It seems to be agreed by a substantial majority of solicitors and their accountants that, ideally, the "cash" basis of accounting for V.A.T. is the most advantageous — or the least disadvantageous, depending upon the point of view. Pragmatic considerations have, however, tended to be the final arbiter in the decision of whether to opt for the "cash" or "invoice" basis; most practitioners realised well before the end of August that it would be impossible to reduce their Debtors' Ledgers by the end of that month to a figure upon which they could, with any equanimity, offer the Revenue a gratuitous 18% tax! Thus, a large number of solicitors has opted for the "invoice" basis of accounting, coupled with a vague intention of changing to the "cash" basis when — and if — the level of the Debtors' Ledger, and other circumstances, permit. Clearly, the profession was unanimous in its feeling that, whatever basis was adopted, it owed its clients a duty, so far as possible, to save them from becoming liable to bear unnecessary V.A.T. Much midnight oil was burnt in costing, invoicing and collection prior to 31st August. Equally clearly, the very considerable but short- term labour involved in mitigating the clients' V.A.T. liability will be more than matched by the additional long-term accountancy and administrative procedures which will be necessary in order to present to the Revenue the two-monthly V.A.T. Returns. Depending upon the existing form of book- keeping and accountancy, the additional procedures will vary. Kalamazoo has produced completely revised Accounts stationery, to replace its previous system; certain computerised accounts systems are already, or can be modified so as to be, able to handle (Continued on P. 175) 171

Comment

U1

Expediting the Administration of Estates

173

Bills before the Oireachtas

177

1 81

Instructions for the Rural Will

An Unwilling Response Correspondence For your Diary

1®^

Client Care is Business Care

!®7

1 89

Book Review

I 9 ®

Professional Information

Executive Editor: Mary Buckley Editorial Board: Charles R. M. Meredith, Chairman John F. Buckley Gary Byrne William Earley Michael V. O'Mahony Maxwell Sweeney Advertising: Liam Ó hOisin, Telephone 305236 The views expressed in this publication, save where other-wise indicated, are the views of the contributors and not necessarily the views of the Council of the Society. * Published at Blackhall Place, Dublin 7.