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ACCA Strategic Professional · Advanced Taxation (UK) · Ethical and professional issues arising from the giving of tax planning advice

Mira, a tax adviser, is asked by a long-standing client to confirm to a prospective lender how much tax the client paid last year. The client has not given any permission. What should Mira do under the general rule of professional confidentiality?

Mira should decline to disclose the tax figure until the client consents or a legal duty requires disclosure. Client tax affairs are confidential, and a lender's request gives no automatic right to the information. Labelling the information as confidential after disclosure does not cure the breach.

  1. AProvide the figure, because lenders are entitled to rely on advisers
  2. BProvide the figure only if the amount is below the personal allowance threshold
  3. CDecline to disclose until she has the client's consent or a legal duty to disclose appliesCorrect
  4. DProvide the figure but mark it as confidential

Explanation

Confidential client information may be disclosed only with client consent, where there is a legal or professional right or duty to disclose. None applies here, so Mira must withhold the information until the client authorises it. Marking the figure confidential does not create permission to disclose.

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