EU Tax Reporting Rules Spark Adviser Confidentiality Concerns (1)

EU countries are under pressure to revisit their rules on professional privilege following a court ruling that confidentiality protections granted to lawyers don’t extend to tax advisers and accountants when reporting cross-border transactions.

Lawyers and tax professionals warn that adjusting to the ruling could lead to more litigation where national administrations will have to consider who is entitled to confidentiality and thus exempt from reporting obligations, and whether domestic laws implementing the rules too loosely need to be changed.

Some suggested the EU’s executive arm, the European Commission, should step in to prevent further uncertainty.

“It will be quite messy ...