asked the Minister for Finance if he intends to take steps to correct the anomalous position arising out of the decision of the High Court in a case (details supplied) regarding the liability for VAT of solicitors; and if he will make a statement on the matter.
Written Answers. - Solicitors' VAT Liability.
50.
The High Court decision referred to does not affect the VAT liability of solicitors as such but alters the interpretation of contract law as it affects solicitors, insurance companies and policyholders. Prior to the decision, services supplied by a solicitor acting on the instructions of an insurance underwriter in representing an insured defendant in litigation were regarded for VAT purposes as being supplied to the insured person. The High Court found that such services should be regarded as being supplied to the insurance underwriter.
The implications of the decision are being studied in detail at present both within my own Department and in the office of the Revenue Commissioners. When these studies are completed I will consider what measures, if any, are appropriate.