Law Lords reject Revenue’s advice demands

Law Lords voted unanimously to overturn rules which allow tax inspectors to demand that companies and wealthy individuals disclose confidential legal advice.

The decision follows the case brought by Morgan Grenfell against the Revenue – in 1999 the investment bank refused to disclose to tax inspectors legal advice it had received on a tax avoidance property scheme it had sold to Tesco.

The Revenue had been increasingly using its ‘section 20’ powers to demand documents and raid premises following a ruling last year that allowed the Revenue to override normal legal privilege.

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