The Gazette 1990

GAZETTE

A PRIL 1990

structure or a structure the use of which is an unauthorised use is not exempted. The Conveyancing Committee has received a number of queries in relation to whether or not floor area exemption limits are cumulative. The following examples, it is hoped, will clarify the position: 1. In the case where a dwelling- house has been extended and the extension is up to the exemption limit of 23 square metres and the extension has been erected without planning permission, then any subse- quent extension will require planning permission. 2. Reference is made in the Regulations to the original floor area not being increased by more than 23 square metres. What is meant by the "Original Floor Area" can cause confusion. The better argument appears to be that the "original floor area" is the original floor area of the house excluding any additions for which planning permission was or was not required. Accordingly, if an extension which uses up the 23 square metre allowance is erected on foot of a planning permission, then the Exempted Develop- ment Regulations cannot be used to extend the extension beyond that size and any such further extension will require planning permission. 3. If a garage is converted into a

Under Section 8 a person who engages in the supply of the taxable goods or services, that will exceed the exemption limits giving rise to a liability to VAT, in the course or furtherance of a business or profession shall be a taxable person, and as such shall be accountable and liable to pay the VAT in respect of such supply. The Revenue Commissioners are empowered, in the case where there are two or more taxable persons who are so interlinked that it would be expedient, and in the interest of the efficient adminis- tration of tax, deem the two parties to be one and those persons may be made jointly and severally liable. The new regime however, does not apply to the supply of immovable goods, inter group transfers in relation to exempt and partially exempt bodies of moveable or immovable goods or leasing services and transfers of a business or part of a business to a group containing an exempt or partially exempt body. Up to this a limited form of group treatment was permitted between partially exempt and exempt bodies in so far as the VAT was insignificant. The new regime is more flexible but there are conditions. 1. It applies only to corporate bodies established in the state although branches of foreign companies also qualify. 2. All members of the group must come under at least 50% control. 3. The members must be bound by financial, economic and organisational links. The Revenue Commissioners can cancel the registration by notification in writing which is effective from the date specified in the said notification. Advantages of this scheme a. Inter group transfers can now be VAT free. b. Additional VAT may be recover- able on the whole group. c. Financial companies which heretofore kept inter group management under strict control can now charge for inter group services without worry. d. In certain circumstances it may be necessary to register before joining a VAT group. e. Cash flow benefits.

Practice Notes

Exempted Developments An Exempted Development is a development for which planning permission is not required. The categories of exempted de- velopments are defined in: a) Section 4 (I) of the 1963 Act and, b) In Planning Regulations made by the Minister for the Environ- ment pursuant to Section 4 (II) (VIII) of the 1963 Act. The current regulations made pur- suant to this Section are: 1. The Local Government (Planning & Development) Regulations 1977 S.I. No. 65 of 1977 - Third Schedule and Article II thereof. 2. Local Government (Planning & Development) (Amend- ment) Regulations 1981 S.I. No. 154 of 1981. 3. Local Government (Planning & Development) (Postal & T e l e c ommu n i c a t i o n s) (Exempted Development) Regulations 1983 S.I. No. 403 of 1983. 4. Local Government (Planning & Development) (Exempted Development & Amend- ment) Regulations 1984 S.I. No. 4348 of 1984. A development occurring after 1/10/84 which is not an exempted development and for which plann- ing permission has not been obtained is an unauthorised struct- ure or use and it should be noted that although a development may be an exempted development and not require planning permission it may involve works that require building bye-law approval pursuant to the provisions of the Public Health (Ireland) Act, 1878. It should also be noted that Article II (VIII) of the 1977 Regulations provides that any extensions, alteration, repair or renewal of an unauthorised

habitable area, then the floor area of the garage is deducted from the floor area available for development under the Exempted Development Regu- lations. • Conveyancing Committee

VAT Group Scheme With effect from the 1st day of September, 1989 a revised scheme for extended group registration was introduced on a trial basis allowing exempt and partially exempt corporate bodies to become members of a VAT Group. Section 8(8) of the VAT Act, 1972 (as amended) allows for the treatment of two or more taxable persons as one taxable person.

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