JPHLAW NEWS
Taxman forces lawyers and accountants to divulge client details
British tax investigators hit lawyers and accountants with nearly 1,500 demands last year for information about existing or former clients, it emerged today.
The production orders – which have sounded alarm bells over professional privilege with lawyers – were issued by Revenue and Customs’ criminal investigation directorate as part of investigations into tax evasion and money laundering.
According to lawyers, the tax authorities often insist that information and documents are provided quickly, which can be disruptive, especially for smaller professional service firms.
Law firms and accountancy practices that refuse or fail to provide HMRC with requested information can be charged with a criminal offence. On the other hand, lawyers say, firms that accidently provide more information than required may put themselves at risk of a legal claim from the client concerned.
According to research, Britain’s tax investigators have issued more than 8,000 production orders in the past five years. The law firm said that the number of orders is likely to rise owing to mounting ministerial pressure for more criminal prosecutions for tax fraud.
Most tax advisers and accountants will not be familiar with production orders and may be unsure of their obligations and what they should do when one lands on their deskFor example, they must not tip off their client about an HMRC investigation. Such behaviour can have extremely serious consequences.
John P Hagan / JPHLAW Solicitors offer a full range of legal services including Conveyancing Tax Commercial Criminal Family Law Divorce Wills Probate Immigration Notary Public from offices in Portadown serving all of County Armagh and Belfast
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