The judgment earlier this year of the House of Lords in R v Special Commissioner and another, exparte Morgan Grenfell & Co provides a good opportunity to review the rules relating to confidentiality and professional privilege for tax advisers and their clients.
The case concerned an attempt by the Inland Revenue to obtain a copy of counsel’s opinion on a tax avoidance scheme. The client to whom the opinion had been given resisted disclosure on the grounds of legal professional privilege. The Divisional Court and Court of Appeal both held that no privilege attached to counsel’s opinion in the hands of the client.
