Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Statutory privilege for legal advice extended


Statutory privilege for legal advice extended

Legislation extending statutory privilege to tax advice provided by tax advisors such as chartered accountants will be introduced in November, Revenue Minister Michael Cullen announced today.

“The ‘privilege’ or right of non-disclosure for tax advice provided by non-lawyers will be similar to that applying to tax advice given by lawyers who do not have to disclose that advice to Inland Revenue,” Dr Cullen said.

“Chartered accountants should be able to give candid and independent tax advice to their clients in the same way that lawyers can.

“Clients are likely to be more open with their tax advisors if the advice they receive is confidential, which will ultimately help voluntary compliance with the law.

Communications between advisors and clients will be privileged if they have the dominant purpose of giving or receiving tax advice on tax laws. Clients will be able to waive the privilege if they wish – for example, to defend a tax position they have taken on advice.

“The privilege for non-lawyers will be subject to restrictions. Factual information included in advice given to clients will have to be disclosed to Inland Revenue in the form of a statutory declaration. There will also be exclusions for information that supports financial statements and tax returns, for non-tax advice such as valuation and investment advice, and for matters relating to debt recovery and fraud.

“As a result of extensive consultation with professional bodies, the government is satisfied that the proposed change strikes the right balance between consistency of treatment for tax advice and ensuring that Inland Revenue has access to sufficient information to do its job, Dr Cullen said.

The change will be included in the taxation bill to be introduced in November and is expected to apply from enactment.

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>

ALSO:

Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>

ALSO:

More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>

ALSO:

Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>

ALSO:

Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>

ALSO:

General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news