Legal Matters Associated with Documents Flashcards
You are moving to a new flat which you will also use as your work premises. The normal policy is to retain client records for 10 years, how do the guidelines apply in terms of the retention of records?
You should only keep records for 8 tax years from now on
You should request client’s permission to destroy papers belonging to them
Where the preparation of legal documents by a member o the ATT is concerned, the drafting of a document for the transfer of land is classed as what?
Reserved legal activites
When considering a lien, can it be exercised over all documents?
No, only over certain documents belonging to the client
What are the obligations under relevant data protection law?
To store data confidentially and securely
To maintain records of all processing activities
To allow consent to be withdrawn
What does the guidance in the PRPG on drafting legal documents with ‘reserved legal activities’ relate to?
There are certain legal documents which ATT and CTA members are not qualified to draft at all
What can tax clients of ATT and CIOT members expect under data protection legislation that their adviser will do?
Store clients’ data confidentially and securely
Have procedures in place to deal with clients’ exercisable rights
Have appropriate consent for marketing purposes
What can tax clients of ATT and CIOT members NOT expect under data protection legislation that their adviser will do?
Make use of legal professional privilege where appropriate to safeguard sensitive information
According to data protection legislation, how long should a client’s working papers be held for?
As long as necessary
Where a member does not have a document retention clause in their client engagement letter, the PRPG recommends that they should have regard to a number of time periods when determining how long to keep working papers. Which are these?
Any period of retention required by law/statute
The period of time for which the working papers may be required for completing tax returns
The period of time during which actions may be brought in the courts
What is the statutory retention period under the CA 2006 for which a member should keep accounting records for a private limited company?
Three years from the date on which they are made
What is the minimum recommended time for a member to keep income tax records relating to an employee who has left their employment?
7 years from the end of the tax year to which they relate
What is legal professional privilege?
Legal professional privilege is a common law privilege which protects communications between a professional legal adviser and their client
True or false, a lien can be exercised over a member’s working papers?
False
True or false, a lien can be exercised over a client’s tax return and associated correspondence?
True
