The Human Cost of VAT

1
The Human Cost of VAT

• Case Study
• The Multiple Sclerosis Society of Ireland
• Michael Dineen

2
MS Society Brief Background

• MS Ireland was founded in 1961 by Dr. Robert
  Brian Pringle.
• The Society exists to facilitate People with
  Multiple Sclerosis, to control their lives and
  environment, to live with dignity and participate
  in the community.
• MS Ireland offers services to people with MS
  through its network of voluntary branches and
  through its full-time staff at the National
  Office and in the Regions

3
National MS Care Centre

• The national MS care centre opened in 1989 and
  after additional development work in 2001/2002
  now provides 12 bedrooms for short-term respite
  care and therapy services to people with multiple
  sclerosis and other neurological conditions

4
National MS Care Centre Bushy Park Road, Rathgar
5
VAT on capital expenditure

• Care centre development
• Proposed new Resource Centre

6
Cost of recent development, extension and
refurbishment at the Care Centre

• Net VAT
• Building costs 2,115 K 265 K
• Consultancy 408 K 85 K
• fees etc
• Total VAT cost 350 K

7
Proposed new Resource Centreat Northumberland
Road

• Costs are VAT inclusive
• New premises 2.15 m
• Refurbishment
• consultancy costs 1.55 m
• Total projected costs 3.70 m

8
VAT Bill on Resource Centre refurbishments

• VAT on building refurbishments 162,000
• _at_ 13.5
• VAT on Design,Planning
• and Other Fees _at_ 21 32,000
• Total VAT Bill 194,000

9
VAT on annual Administration Costs

• The Care Centre
• Head Office/Resource Centre

10
Annual VAT cost of running the Care Centre

1. 10,500
2. 22,000
3. ( Estimated ) 25,000

11
Annual VAT on MS Society costs

• 183,000
• 200,000
• 2003 ( Estimated ) 220,000

12
Summary of VAT Costs

• Building care centre
• VAT on Building costs
  265,000
• VAT on consultancy fees etc 85,000
• Running costs - 2002
• Care centre
  22,000
• Head office
  200,000
• Sub-total 572,000
• Potential cost re new
• Resource Centre 194,000
• Total Vat cost
  766,000

13
Impact of the cost of VAT

• Instead of providing urgently needed services,
• 766,000 goes to the government coffers. This
  is wrong!!
• MS Ireland could use this money to -
• Improve community services
• Increase counselling services
• Provide additional informational publications

14
IN CONCLUSION

• MS Ireland calls on the government to give us our
  VAT back!