HMRC has let it be known that it is "unimpressed" with Clifford Chance. Seemingly the legal firm has been briefing potential tax clients that their tax affairs can be kept secret, if they approach lawyers rather than go to accountants.An HMRC spokesman recently told the media:
"We're well aware of this and we're very unimpressed.
There will be some developments and there will be a discussion with Clifford Chance on the way."
Legal professional privilege is a basic common law right.
Were HMRC to overturn that basic right, it would be tampering with one of the main foundations of English law.
Does HMRC consider itself to be above the law?
Tax does have to be taxing.
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I will be ok then, my lawyers are in Lichtenstein.
ReplyDeleteHMRC make their own laws. They consistantly ignore the statutory provisions in all areas not just Tax. They have only just got round to looking at the Management of H&S in the Workplace Regs which came into force 10 years ago and they change everything to suit their own needs. They have even introduced their own legislation for staff handling telephone calls.
ReplyDeleteLegal professional privilege is a basic common law right.
ReplyDeleteDoes it cover everything discussed between a lawyer and a client? If a lawyer tells a client to break the law or how to break it is it still covered by that profesional privilege? Does it also cover offering financial advice?
Not disagreeing with you, just asking.
For me, the mystery is why this would be a surprise to anyone. It has been common practice for ever and a day. Suggests a gross naiveity at HMRC, or cheap political posturing.
ReplyDeleteWhat a surprise to learn that so many legal firms didn't use all those highly qualified tax specialists to just do the book-keeping, ehh?!
Trevor Scott
That's an idea! I will re-embrace Catholicism and have the priest give me dodgy tax advice while in the confessional.
ReplyDeleteYes but..
ReplyDeleteI work for a solicitor and he is regulated to the eyeballs by the Solicitors Regulation Authority. If he dispenses financial advice he must then be registered with the FSA and come under their regulations. Failure to comply and he gets struck off.
Most family Law firms wouldn't have the resources.