Revenue relaxes tax disclosure rules
8 Oct 04
Inland Revenue amends tax avoidance disclosure rules to protect legal privilege
The Inland Revenue has revised its rules on reporting requirements under the new anti-avoidance legislation, following a dispute with the Law Society of England and Wales as to whether the proposed code would conflict with rules regarding client confidentiality.
The new version places the burden of reporting on the client, where the promoter of the scheme "believes the relevant information is covered by legal professional privilege".
Clients will have to make disclosure within five days of the first transaction under the scheme or face a fine of £5,000 plus £600 per day. Alternatively clients can waive privilege.
The new scheme takes effect on 19 November.