The inter-professional relationship between lawyers and certified public accountants in fiscal matters

Abstract

This dissertation sets out to scrutinize the shared perception of lawyers and certified public accountants who work within the domestic fiscal arena, by analysing: a) the general level of services offered by each group, including common areas which lead them to interact with each other; b) the kind of professional relationship between them and the extent of reliance on each other; and c) the pros and cons of multi-disciplinary practices and the possibility of recognising and regulating the Maltese tax profession. Both lawyers and accountants concurred that over the years there have been significant changes in their respective professions in relation to the provision of tax services, which ultimately caused each profession to move out from its traditional functions. From their original role of practical guidance and qualified assistance in starting and running business within offshore jurisdictions, tax lawyers ended up operating as independent tax planners and advisors, many of whom function totally outside their traditional place of work. As regards certified public accountants, although they still still enjoy their exclusivity in the computational aspect, they ended up losing their dominance over the provision of compliance, advisory and planning services. Given the ever increasing clients' requirements and the continuously changing tax law, attorneys are without any doubt indispensable to CPAs. Thus, the latter are frequently obliged to consult the former in order to ensure that the service delivered to their clients is in line with the latest amendments in law. So, rather than antagonism between lawyers and certified public accountants, a healthy and collaborative professional relationship exists between the two lines of work. The increased inter-professional interaction between the two professions led to the evolution of multi-disciplinary practices which ultimately produce a more fruitful outcome both for the client and also for the tax service provider. The possibility of recognising and regulating the Maltese tax profession is not the most feasible solution given the relative nature and magnitude of the local market. Nevertheless, the possibility of setting-up some kind of disciplinary watchdog to provide some form of discipline over those practioners who are irresponsible both towards their client and Government Departments shall be adequately considered.