The Human Cost of VAT Case Study The Multiple Sclerosis Society of Ireland Michael Dineen.
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Transcript of The Human Cost of VAT Case Study The Multiple Sclerosis Society of Ireland Michael Dineen.
The Human Cost of VAT
Case Study
The Multiple Sclerosis Society of Ireland
Michael Dineen
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 it’s network of voluntary branches and through its full-time staff at the National Office and in the Regions
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
National MS Care Centre
Bushy Park Road, Rathgar
VAT on capital expenditure
• Care centre development
• Proposed new Resource Centre
Cost of recent development, extension and refurbishment at the
Care Centre Net VAT
Building costs € 2,115 K € 265 K
Consultancy € 408 K € 85 Kfees etc Total VAT cost € 350 K
Proposed new Resource Centre
at Northumberland Road Costs are VAT inclusive
New premises € 2.15 m
Refurbishment &consultancy costs € 1.55 m
Total projected costs € 3.70 m
VAT Bill on Resource Centre refurbishments»
• VAT on building refurbishments € 162,000 @ 13.5%
• VAT on Design,Planning and Other Fees @ 21% € 32,000
• Total VAT Bill € 194,000
VAT on annual Administration Costs
•The Care Centre
• Head Office/Resource Centre
Annual VAT cost of running the Care Centre
2001 € 10,500
2002 € 22,000
2003 ( Estimated ) € 25,000
Annual VAT on MS Society costs
2001 € 183,000
2002 € 200,000
2003 ( Estimated ) € 220,000
Summary of VAT Costs Building care centre
VAT on Building costs € 265,000VAT 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
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
IN CONCLUSION
MS Ireland calls on the government to
give us our VAT back!