Bloomberg:  Prudential Loses U.K. Top Court Case Over Tax Advice:

The U.K. Supreme Court said tax advice given to Prudential by accountants wasn’t protected by legal privilege and should be disclosed to the British government [R v. Special Commissioner of Income Tax]

The U.K.’s highest court said only advice from lawyers was protected by the privilege, according to a press summary of the judgment today. When tax authorities asked Prudential for information about a tax avoidance scheme created by PricewaterhouseCoopers LLP, the company argued it didn’t have to hand over any documents containing advice from accountants.

“Accountants will be crying into their soup tonight, and tax lawyers will be dancing in the streets,” said Peter Clough, a partner at U.K. law firm Osborne Clarke. “The case presents a clear cut choice for clients: if you want confidential tax advice, you’re better off going to a law firm.”

• Financial Times, Court Refuses Legal Privilege to Accountants
• Reuters, Tax Advice Not Secret Like Legal Counsel, UK Court Rules

(Hat Tip: Richard Jacobus.)