Gordon Brown Refuses To Delay Implementation Of Tax Scheme Reporting Laws

by Robin Pilgrim, LawAndTax-News.com, London

04 October 2004

Speaking prior to Friday's deadline for the introduction of new tax scheme reporting requirements in the United Kingdom, Treasury officials made it clear that Chancellor Gordon Brown would not be delaying the implementation of the measures over concerns that lawyers will not have to disclose relevant information to the Inland Revenue.

In guidance notes issued late last month, the Law Society stated that a solicitor disclosing the information required under the new regime was "likely to be disclosing the substance of privileged communications passing between him and his client for the purpose of obtaining legal advice".

Reports last week citing Law Society sources suggested that lawyers are planning to provide the Revenue with details of tax schemes suggested by their clients, but not with any information on conversations relating to the schemes, or advice provided.

However, this did not go far enough for the accounting industry's representative bodies, which called on the Chancellor to delay the start date for the new reporting requirements.

Although Mr Brown refused to delay the implementation of the new regime, the Accountancy Age news service suggested in a report on Thursday that legislative help may soon be at hand for the accounting community, as the government is said to be planning to shift the responsibility for reporting tax avoidance schemes to the clients of lawyers.

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