Solicitors’ Privileges In Tax Matters Defined

Press, Volume XCVII, Issue 28657, 6 August 1958, Page 12

Solicitors’ Privileges In Tax Matters Defined

(New Zeaiana Press Association)

August 5. The circumstances in which information, books and documents in the possession of a barrister or solicitor of the Supreme Court and relating to the affairs of his client are privileged from disclosure to the Commissioner of Inland Revenue are defined in the Inland Revenue Department Amendment Bill which was introduced in th? House of Representatives tonight. The bill was read a second time pro forma, and referred to the Statutes Revision Committee. The Minister of Finance (Mr Nordmeyer) said the measure already had the approval of the Law Society, but there was no reason why it should not go to the committee in order that evidence could be taken on it if derived.

In reply to Mr C. G. E. Harker (Opposition, Hawke’s Bay), Mr Nordmeyer said the bill contained nothing about a committee to investigate the situation surrounding; the payment of income tax in advance by self-employed peoole There would be mention of that in the main taxing bill which would come before the H n ”se next Tuesday The bill states that any information, book or document is privileged from disclosure if:

fa) It is a confidential communication passing between a legal practitioner, in his professional capacity, and his client <b) It is made, or brought into existence, for the purpose of obtaining or giving legal advice or assistance (c) It is not made, or brought into existence, for the purpose of

committing or furthering the commission of an illegal or wrongful act.

The privilege will not extend to any information or book or document consisting of, or relating to, the receipts, payments, income, expenditure, or financial transaction of any specified person, if it is prepared or kept in connexion with a solicitor’s trust account.

If a barrister or solicitor refuses to disclose any information or book or document on the ground that it is privileged, either he or the Commissioner of Inland Revenue may apply to a Magistrate for an order determining whether the claim of privilege is valid.