APIP Calls for VAT Exemption on PIP Fees after Money Village Wins Landmark AppealDate added: 19 Jun 2015
On Wednesday (17th June 2015), the Association of Personal Insolvency Practitioners (APIP) held a members meeting and training day in Portlaoise. At the meeting, APIP members called for a VAT exemption on personal insolvency practitioners’ (PIPs’) fees following a recent landmark ruling. Speakers at the APIP meeting were Lorcan O’Connor, Director of the ISI, Eric Hendy, Chairman of APIP and Eugene McDarby, Director of UHY Personal and Corporate Insolvency Solutions, CEO of Money Village and APIP VAT committee member.
After a five-year appeal, this week, the Revenue Appeals Commissioner found in favour of Money Village and ruled that debt management services are not subject to VAT. Speaking at the APIP meeting in Portlaoise on Wednesday, Eugene McDarby, CEO of Money Village, praised the decision of the Revenue Appeals Commissioner; “It makes absolutely no sense to further saddle people in debt with yet even more taxation, and that is precisely what Revenue were doing here. This was a stealth tax on already stressed people. We, in this industry, are here to help people resolve their debt problems and we are absolutely delighted that the Revenue Appeals Commissioner has made a common sense ruling, which favours the already indebted consumer.”
APIP are now asking the Minister for Finance, Michael Noonan, T.D. and the Office of the Revenue Commissioners to waive VAT for personal insolvency practitioners’ (PIPs’) fees. Speaking in Portlaoise, Eric Hendy, Chairman of APIP said; “We (APIP) welcome this logical yet, until now, unprecedented ruling. Debtors who come to us are sinking in unsustainable debt. PIPs work with them to manage and restructure their debt. Charging 23 percent VAT for Revenue is increasing their debt before we even get started. Instead of VAT, it would make more sense to increase distribution to unsecured creditors, such as shops, wholesalers and people in the wider business community.”
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For further information, contact Orla Clancy, Media Consultant for APIP, at email@example.com or telephone 087 938 8882.
Notes to Editor
Association of Personal Insolvency Practitioners (APIP)
The Association of Personal Insolvency Practitioners (APIP) is the largest representative body of personal insolvency practitioners (PIPs) in Ireland. APIP members are authorised by the Insolvency Service of Ireland (ISI). With a current membership of 81, APIP collectively represents a significant number of insolvency clients nationwide who are at various stages of the process.
2015 APIP Committee
Eric Hendy, Chairman of APIP
Tara Cheevers, Secretary of APIP
Mitchell O'Brien, APIP Committee Member
Alan McGee, APIP Committee Member
Steven Curtis, APIP Committee Member
John Kenny, APIP Committee Member
APIP VAT Committee
Eugene McDarby, APIP VAT Committee Member
John Kenny, APIP VAT Committee Member