EWHC 2494 (2009) Prudential v HMRC

Judicial review, disclosure to HMRC of tax advice - HMRC won

Case Summary:

HMRC had served S20 TMA notices while investigating a commercially marketed tax avoidance scheme. Prudential did not want to disclose to the Inspector tax advice from its accountants and argued the information was covered by Legal Professional Privilege and/or the material was not relevant. It was accepted that accountants do give tax advice but the judge held that only advice given by lawyers was protected and the High Court was bound by precedent.

The High Court also decided that the material desired was relevant as there were indications in papers already seen that the correspondence with the accountants could show more of the facts and the “true purpose of the transaction had been at least glossed over.”