solicitors fees - reduced for cash

Hi

What are the implications, if any when buying and selling, where the solicitor offers a reduced professional fee rate "for Cash"?

I imagine coming from a solicitor its okay, but wanted to make sure.

cheers

Reduced fee for cash?

Ummm? Now what does that remind me of? Oh, I know, tradesmen who don't pay tax on cash in hand nixers. And no receipt. Solicitors are supposed to account for fees and I cannot see any reason why paying in cash should reduce the fee plus VAt due.

I have a simple enough rule when dealing with professional people - if they are willing to cheat for me then what is to stop them cheating on me?

mf

paddyodoors said:

Hi

What are the implications, if any when buying and selling, where the solicitor offers a reduced professional fee rate "for Cash"?

I imagine coming from a solicitor its okay, but wanted to make sure.

cheers

Click to expand...

Has he accounted for VAT on your invoice? Will he even give you an invoice?

I can think of no good reasons why he would want to do this legitimately.

I can think of several bad ones:
- he is having cash flow problems and wants to evade VAT and tax liabilities
- he is greedy and wants to evade VAT and tax liabilities
- he is getting divorced and wants to evade VAT and tax liabilities and have a smaller divorce settlement
- he thinks all the banks are going to collapse and he wants to store it down the back of his wardrobe (this is bad because maybe he knows something we don't!)

plus, if the solicitor is evading tax, he\she is an idiot; do you really want your legal affairs handled by an idiot?

Although it is much less common than it used to be, I sometimes get clients asking for a discount for cash. I used to explain to them that my fees were already low, that I charged broadly the same fee on lots of similar transactions and that the Revenue simply wouldn't find it credible if I showed a smaller fee on this particular job. Eventually, I decided that this explanation - though true in a literal sense- made it sound like I was in sympathy with the client's view of tax and that my only reason for not acceding was that I couldn't get away with it.

Now I just refuse, and so far as I know no clients have left me over it.

Oh right, thanks for the replies, I wasn't thinking of VAT from their side. so that is tax evasion then - don't want to be involved with that.

no I havent received an invoice yet as currently nothing had been done. I have just received the preliminary docs to arrange the sale - there are on headed company paper and the solicitor is not one of the main header names.. I presume I need an invoice at the end.

doesn't the fee just get deducted out of the sale proceeds?

Paddy

paddyodoors said:

Hi

What are the implications, if any when buying and selling, where the solicitor offers a reduced professional fee rate "for Cash"?

I imagine coming from a solicitor its okay, but wanted to make sure.

cheers

Click to expand...

Cash Price? Credit Price?

With cash some firms can reduce their prices. Why? because they get the money there and then - no messing, no invoicing and most importantly no bad debt!

Do not presume this solicitor is trying to rip anyone off, maybe ask him and see what he has to say? Its a buyers market!

"Lower your voice and strenghten your argument"

If its cheaper doing it with cash then you might as well do it. If you pay by cash its up to the solicitor to do what he wants with it - declare it, gamble it, whatever. Bertie Ahern sees no problem with cash so why should anybody else?

Don't forget if selling a properly that is liable to CGT you are entitled to deduct the solicitor's fees from the taxable amount. So you might be glad you have a receipt for something you've paid for. But if it's your PPR then the cash payment doesn't matter to you.

MrKeane said:

If its cheaper doing it with cash then you might as well do it. If you pay by cash its up to the solicitor to do what he wants with it - declare it, gamble it, whatever. Bertie Ahern sees no problem with cash so why should anybody else?

Click to expand...

Do take note that if you pay by cash, and don't get a receipt, there is nothing to stop the recipient from "forgetting" that he ever received payment and billing you again for the same money.

Pay him in cash . (You are breaking no laws). Get some kind of receipt from him and then post a copy to the revenue commissioners.

Folks,

I think you are all missing the point somewhat; Let's just leave aside the argument that there is obviously far too common an acceptance in Ireland of tax dodging.

Let's just look at this from a consumer protection standpoint. A solicitor is an officer of the Courts and is expected to maintain a high standard. In his personal life, he or she may well be a grub, but a solicitor's professional actions should be above reproach. If your solicitor doesn't maintain this high standard in his\her professional dealings you are foolish to entrust your business to him\her. Why would you take such a chance?

Has the solicitor said he won't provide a receipt?

If he is prepared to give a proper receipt then i don't see a problem.