Prudential Plc & Anor, R (on the application of) v Special Commissioner of Income Tax & Ors [2010] EWCA Civ 1094 (13 October 2010)

Prudential Plc & Anor, R (on the application of) v Special Commissioner of Income Tax & Ors [2010] EWCA Civ 1094 (13 October 2010)

Legal professional privilege at common law applies only to communications between clients and members of the legal profession for the purpose of obtaining legal advice. It does not extend to legal advice given by accountants, regardless of their qualifications or the nature of the advice. The Court of Appeal is bound by its previous decision in Wilden Pump Engineering Co v Fusfeld, and there is no basis in common law or human rights law to extend LPP to accountants. Any such extension is a matter for Parliament, not the courts.

Citation
[2010] EWCA Civ 1094
Parties
Claimant/appellant: Prudential plc; Claimant/appellant: Prudential (Gibraltar) Ltd; Defendant/respondent: Special Commissioner of Income Tax; Defendant/respondent: Philip Pandolfo (HM Inspector of Taxes); Intervener: Institute of Chartered Accountants in England and Wales; Intervener: The General Council of the Bar; Intervener: The Law Society
Jurisdiction
England and Wales
Judgment Date
13 October 2010
Procedural Posture
Judicial Review (administrative Law) / Appeal From High Court to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Scope of Legal Professional Privilege, Privilege and Accountants, Disclosure Obligations Under Tax Legislation, Statutory Interpretation of Privilege, Human Rights and Privilege
Legal Professional Privilege Tax Law Administrative Law Scope of Legal Professional Privilege Privilege and Accountants Disclosure Obligations Under Tax Legislation Statutory Interpretation of Privilege Human Rights and Privilege

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Parties

Prudential plc

Claimant/appellant

Prudential (Gibraltar) Ltd

Claimant/appellant

Special Commissioner of Income Tax

Defendant/respondent

Philip Pandolfo (HM Inspector of Taxes)

Defendant/respondent

Institute of Chartered Accountants in England and Wales

Intervener

The General Council of the Bar

Intervener

The Law Society

Intervener

Procedural Posture

Judicial Review (administrative Law) / Appeal From High Court to Court of Appeal

Legal Issues

  1. 1 Does legal professional privilege (LPP) extend to legal advice given by accountants as opposed to members of the legal profession?
  2. 2 Is the limitation of LPP to lawyers compatible with human rights law (ECHR Articles 8 and 14)?
  3. 3 Can the Court of Appeal depart from its previous decision in Wilden Pump Engineering Co v Fusfeld?

Ratio Decidendi

Legal professional privilege at common law applies only to communications between clients and members of the legal profession for the purpose of obtaining legal advice. It does not extend to legal advice given by accountants, regardless of their qualifications or the nature of the advice. The Court of Appeal is bound by its previous decision in Wilden Pump Engineering Co v Fusfeld, and there is no basis in common law or human rights law to extend LPP to accountants. Any such extension is a matter for Parliament, not the courts.

Court Disposition

Appeal dismissed

Orders

  • The appeal by Prudential plc and Prudential (Gibraltar) Ltd is dismissed.
  • No extension of legal professional privilege to communications with accountants.