A recent
case in the Supreme Court has seen the issue of Legal Professional Privilege
considered.
The case, R
(on the application of Prudential) v Special Commissioner of Income Tax [2013]
UKSC1 related to a matter in which the Prudential had refused to hand over
documents to HMRC in connection with a marketed tax avoidance scheme. HMRC took
exception and issued proceedings and, given the issues, the Law Society and the
Bar Council intervened in proceedings.
The outcome
was not unanimous but it did make very clear that the principle of legal
professional privilege applied only to advice given by qualified lawyers and
accountants providing tax advice could not claim such privilege.
Will we see
more accountants considering ABSs in an attempt to qualify for such privilege
and will it work?
