Chapter 24

Question 1

What does help sheet D provide?

Answer 1

Guidance provides action of the fundamental principles and standards of tax planning in relation to requests for access to data by HMRC

Question 2

What is meant by client data?

Answer 2

All information relating to clients, held by a member in any form

Question 3

Can a member disclose on behalf of a client responding to an informal request?

Answer 3

No - has to be made with the client’s permission, and ask client what they want to disclose

Question 4

What should a member do if they have received an oral informal enquiry from HMRC about one of their clients?

Answer 4

Ask for it to be put down in writing so that a response can be agreed with client

Question 5

What should a member do when they have received a formal enquiry about one of their clients?

Answer 5

• Should consider whether need specialist advice
• Should advise client about any relevant right to appeal against enquiry
• If notice is legally effective - there is a legal obligation to disclose

Question 6

What is the most common statutory notice? and describe

Answer 6

Under Schedules 36 FA 2008

• Allows HMRC to require data within a specified time.
• Is issued to third-party f approved by first-tier tribunal
• Doesn’t allow HMRC to force entry and client can refuse (with good reason)
• Doesn’t override legal professional privilege

Question 7

What does it mean if a formal request is valid?

Answer 7

The request overrides the member’s duty of confidentiality to their client

Question 8

When does legal privilege arise? and who does the privilege belong to?

Answer 8

It arises under common law and may only be overridden if this is set out in legislation

Privilege belongs to the client not the member

Question 9

What is meant by legal privilege?

Answer 9

A common law privilege which protects communications between a professional legal adviser and his client

Question 10

What’re the two types of legal privilege?

Answer 10

• Legal advice privilege - covers docs passing from client an their legal adviser prepared for purpose of obtaining / giving legal advice
• Litigation privilege - covers data created for dominant purpose of litigation

Question 11

Describe legal advice privilege

Answer 11

legal privilege that covers docs passing from client an their legal adviser prepared for purpose of obtaining / giving legal advice

Question 12

Describe litigation privilege

Answer 12

legal privilege that covers data created for dominant purpose of litigation