Divorce Lawyers
Q.Divorce lawyers must tell of tax dodges A ruling yesterday by England's senior family judge reveals a new hazard of getting divorced - that your solicitor or your soon-to-be-ex's lawyer will shop you to the authorities for not paying all your taxes. barristers and solicitors negotiating divorce settlements risk committing a criminal offence if they fail to report to the National Criminal Intelligence Service (NCIS) any suspicion that some family assets result from tax evasion or social security fraud. And the Inland Revenue has information-sharing agreements with the US Internal Revenue Service and the Canada Customs and Revenue Agency. Where will this lead with respect to legal privilege, already under siege? Lawyers are already subject to sanction and liability for assisting their clients in asset protection to avoid existing creditors . Of course lawyers are not bound to secrecy when they have knowledge of the incipient commission of a crime ... but who are divorce lawyers to decide where tax avoidance ends and tax evasion starts? And, after all, tax laws are one of the few categories of ex post facto or retrospective laws that can legally and constitutionally be enacted.
A.It also means that clients may be even less open with their solicitor. Question - does a solicitor under this rule have a duty to tell his client up front that anything his client tells him may be communicated to the NCIS if it is necessary in the opinion of the solicitor? Does a solicitor have to tell his client if he decides to pass on information to the NCIS? There would seem to be a very great potential for conflict of interest, and also the potential for allegations from a party that the solicitor of the other party is guilty of criminality. Even if such an allegation cannot be upheld, the threat will surely be sufficient to interfere with the divorce case.
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