HMRC “on warpath” with Clifford Chance
Seems like the accountancy profession’s none too pleased with CC’s marketing to potential tax clients either…
Jostling between the professions for pecking order is normally reserved for bar banter. Not when it comes to generating fees though…
Accountancy Age: Legal privilege has always been a major bone of contention between lawyers and accountants in terms of the supposed advantage it gives to lawyers in providing advice.
One area where this is particularly prominent is when it comes to giving tax advice. The reason being that secrecy can be a useful weapon when it comes to fending off the unwelcome advances of the pesky Revenue and Customs. However, in marketing themselves on this basis, it looks like Clifford Chance have manged to rub up more than the competition this time. Here’s the offending blurb from a Clifford Chance communiqué:
“As things currently stand it would be prudent for clients particularly in high value or complex transactions to obtain tax advice from lawyers rather than accountants. Advice given by lawyers is protected by legal advice privilege.”
The piece has raised hackles in the accountancy profession and at HMRC…
HM Revenue & Customs was “unimpressed” to learn Clifford Chance has effectively told potential tax clients that their tax affairs can be kept secret if they approach lawyers rather than go to accountants.
An HMRC insider said: “We’re well aware of this and we’re very unimpressed. There will be some developments and there will be a discussion with Clifford Chance on the way.”
Doubtless under considerable political pressure given the state of the public finances, HMRC are particularly frisky about tax avoidance at the moment. Angry tax collectors are not the sort of people you want knocking on your door, even if it is as solid as the one at CCHQ.
