RevenueDocuments - notice to produce - not limited by legal professional privilegeR v Inland Revenue Commissioners, Ex parte Morgan Grenfell & Co Ltd: DC (Buxton LJ and Penry-Davey J): 8 November 2000The applicant bank devised a tax-efficient system for buying property from clients on a long lease and then subletting it back.As well as providing efficiencies for the client the scheme, on the applicant's view, was also benign in its effect on the applicant's tax position.

The tax inspector decided to investigate a specific transaction and, pursuant to his investigation, he asked the special commissioner to consent to the issue of a notice under s.20(1) of The Taxes Management Act 1970 for production of documents including documents normally protected by legal privilege.

The applicant applied for judicial review of the decision.Michael Beloff QC and Giles Goodfellow (instructed by Slaughter and May) for the applicant; Timothy Brennan and Ingrid Simler (instructed by the solicitor, Inland Revenue) for the Inland Revenue commissioners.Held, dismissing the application, that legal professional privilege was no protection from the 1970 Act except where that privilege was expressly preserved; and that, accordingly, a notice under s.20(1) of the Act requiring production of material that would ordinarily attract privilege was made within the authority of its issuer.