When initiating complicated Tax Appeals, one of the questions that sophisticated clients often have (often unfortunately well into the process) is whether they can keep sensitive commercial documents “confidential”. That seems like a simple question, but it has a long and somewhat turgid answer involving the Open Court Principle and special rules in the Tax and Federal Courts for confidentiality-orders.
Lawyer-client relationships enjoy what is commonly referred to as solicitor-client privilege – or lawyer-client privilege. Regrettably (and surprisingly to some), accountants do not have this protection!
As the recent Federal Court of Appeal (“FCA”) decision in Zeifmans LLP has confirmed, where pushed for client information by the CRA, accounting firms – but not law firms – are required to disclose client information, including work done in tax situations!
