Privilege considerations in tax investigations

In the current climate HMRC are increasingly challenging both individual and corporate taxpayers’ positions and adopting a robust and in some cases sophisticated approach to the ensuing dispute. Some of the tactics employed by HMRC include: the issue of very broad requests for the production of documents both on an ‘informal’ basis and during an enquiry; requests for specific disclosure if the dispute reaches litigation; and more regular challenges to a taxpayer’s assertions of privilege in response to such document requests. 

Against this backdrop this article considers the various potential stages of a dispute with HMRC and how the issue of legal professional privilege may arise in each. It sets out a reminder of the key principles underpinning legal professional privilege and provides practical points...