Minimising tax

W

WebBoard

Guest
From: Ctrader .


The following is an excerpt from an article "Using your Lawyer when minimising Tax" in the March issue of Residential Property Investor (N.Z.).

"Property Investors are becoming increasingly aware of tax structures they can use to minimise (but not avoid)tax obligations.
In a a property transaction, your lawyer is also dealing with these same tax issues and it is important that both your accountant and lawyer are on the same wavelength.".......

......."Any communication between a lawyer and a client is legally privileged. Legal privilege means that in any subsequent IRD (ATO)audit, the IRD will not be able to obtain letters or file notes concerning discussions between that lawyer and that client.
This is not the case for communications between an accountant and a client or between a bank and a client.
To make matters easier, a client will often explain to the bank that the main reason for the transaction is to minimise tax, which if later discovered will almost certainly result in the IRD seeking to negate that tax advantage and possibly charge a penalty."

Something to think about.

Ctrader
 
Last edited by a moderator:
Reply: 1
From: Dale Gatherum-Goss


Hi

You are correct, however, be aware that the tax office is fighting this idea constantly and trying to remove the benefits of legal privilege - with some success from time to time!

Dale
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1
From: A Jones


My understanding was that legal professional privilege (for solicitors) only attaches to documents brought into existence for the dominant purpose of litigation or in contemplation of litigation.

It would be difficult to argue that documents relating to the structure of a property purchase were brought into existence for these purposes. Has the law on legal professional privilege been expanded to cover all solicitor/client dealings?
 
Last edited by a moderator:
Top