Tax avoidance row escalates
A serious clash between the Inland Revenue and solicitors is on the cards after the taxman dug in its heels and said it 'could not agree' with guidance on tax avoidance, issued by the Law Society earlier this week.
Link: Accountants and lawyers prepare for epic clash
A spokesman for the Revenue said that legal advice taken at the time the tax avoidance disclosure rules were drawn up by the Treasury convinced them there would not be a problem and that disclosing client’s avoidance schemes to the Revenue would not go against privilege.
Accountants have expressed their ‘severe concern’ at the Law Society’s stance saying it will give them an ‘unfair advantage’ compared to accountants.
But the Law Society is certain that its stance is correct and even said that ‘test litigation’ could be the only way to resolve the matter. The Revenue said it ‘hopes to resolve’ the problem before getting that far.