ACCA Strategic Professional · Advanced Taxation (UK) · Ethical and professional issues arising from the giving of tax planning advice
A tax adviser holds confidential information about a client's overseas income. Which of the following is a situation in which the adviser may disclose the information without breaching the fundamental principle of confidentiality?
The adviser may disclose where the law requires it, such as making a money laundering report to the National Crime Agency. Confidentiality allows disclosure with client consent or where there is a legal or professional duty, but not for curiosity, personal gain or informal requests from third parties.
- AA friend at another firm asks out of professional curiosity whether the client has overseas income
- BThe adviser wishes to use the details to win a similar new client
- CDisclosure is required by law, such as a money laundering report to the National Crime AgencyCorrect
- DThe client's spouse requests it informally without the client's consent
Explanation
Confidential information may be disclosed where the client has given consent, where the law requires it, or where there is a professional right or duty to disclose. A suspicious activity report under money laundering legislation is a legal requirement. Curiosity, commercial gain and informal spousal requests are not permitted grounds.
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