The Gazette 1991

DECEMBER 1991

GAZETTE

appropriate)] in relation to the valuation of property for [gift tax, inheritance tax and stamp duty purposes]. The conse- quences of undervaluation, and it does not require a great deal of undervaluation to bring this about, can have a serious effect on the tax. The surcharge penalty, for stamp duty pur- poses, can amount to double the stamp duty, and for gift tax and inheritance tax, can amount to 100% of that liability. In addition, it may be possible to seek further penalties under the failure to disclose provisions referred to above. • A Seasonal Tale "Once upon a time, in a Place called Blackhall, there was a large old house. One of its many rooms was used as a creche for youngsters who passed the time eating ice-cream and drinking soda pop. The youngsters appeared content with their lot and the counsellors who owned the house were happy that the youngsters seemed to be enjoying themselves. Things continued in this fashion until eventually the youngsters tired of their lotus eating and became curious, as all young people do, about the world around them. The youngsters started wandering the corridors beyond the confines of Room 4 and discovered a whole new universe full of interest and (relative) excitement. Most exciting of all was the Council chamber which seemed to be just like their own creche only bigger and better and brighter. No sooner had they reached this Aladdin's Cave than they began to wonder how they had managed to stay away for so long..." 1991 ended on a high note for the Younger Members Committee with the re-election to the Council of James McGuill and Eva Tobin, its outgoing Chairman (which is not (Younger Members News)

a professional falls foul of the surcharge provisions or the negligence provisions, his only appeal is to the High Court. This surely is against all considerations of justice, particularly as there is available, in other taxes, a much more convenient and easily acceptable form of appeal, to the Appeal Commissioners. This must be afforded to the sufferers in stamp duty as well. Because of the uncertainty relating to the words "interested or con- cerned in or about" an instrument for stamp duty purposes, this type of protection and discharge must be given to the professional. The professional, for his own protection, must inform the tax- payer at the earliest stage of a transaction, of the duty to disclose and the problems of under- valuation. This must be forcibly brought to his attention in the initial letter, placing the obligation firmly on the shoulders of the client and of his valuer in the case of the surcharges. The following are suggested as approriate paragraphs or clauses to be incorporated in that letter: Duty to Disclose 1. Your attention is drawn to the provisions of Finance Act, 1991 relating to the duty to disclose for all purposes of stamp duty. This duty is incumbent on you and in so far as the Revenue may require information relating to the transaction you are obliged to supply all the information in your possession. Failure to make full disclosure, particularly when requested, could result in your being liable for the following: (a) A penalty of £1,000, together with (b) the difference in stamp duty

Fast & Efficient Taxation of Costs

BILLS OF COST DRAWN AND LODGED FOR TAXATION WITHIN TWO WEEKS. SEND YOUR FILE TO.- LORD & CO. Legal Cost Accountants 61 Merrion Square, Dublin 2. Phone 616729/616996

to say that there any shrinking violets among its number). Bet- ween the two of them they amassed 2319 votes and finished in fourth and fifth place respect- ively in the poll. New Chairman, Michael Lanigan has his work cut out to emulate the success of E.T. but with the support and co-operation of his colleagues a very full year is already being planned. Among the new faces on the YMC is incoming Vice-Chairman John Shaw, elected to Council at his first attempt (and without ever being to the crechel). One of the highlights of the 1992 Programme is the Conference at Newcastle, Co. Down on 8/10 May 1992 being organised by the Northern Ireland Young Solicitors Group in association with the Society for Young Solicitors and the YMC. (Watch this space for further details). In fact, all going well, there probably won't be any time left for ice-cream and soda popl Ah well, success has its price... John Campbell YMC

occasioned by the failure to disclose (in the case of fraud, this penalty is doubled).

Undervaluation 2. Your attention is, (also) drawn to the provisions of [Finance Act, 1989 and Finance Act, 1991 (as

4 12