A message from President Phil Boulten SC

16/07/2013

This morning John Hyde Page of 5 Selborne Chambers sent a letter to all Bar Association members advocating the incorporation of barristers’ practices in order to minimise tax liabilities. There is also a petition circulating to call an Extraordinary General Meeting of the Bar Association to discuss changes to the Legal Profession Act and the Bar Rules to enable incorporation of barristers’ practices in order to achieve minimisation of tax liabilities.

I oppose any move to introduce the incorporation of barristers’ practices for tax minimisation purposes. The Association has previously considered this issue and has received legal advice that indicated the practical advantages of incorporation of barristers’ practices are very limited at best.

More importantly, there are important ethical considerations to be borne in mind. It is entirely misguided to pursue proposals that are singularly designed to minimise barristers' tax exposure. The Bar should seek to provide ethical leadership and set high standards wherever possible and the pursuit of legislative change in order to reduce tax exposure for barristers is, in my view, ethically questionable.

The Bar Council is seeking further advice about the practical implications of incorporation of barristers’ practices and will give further consideration to the issue once that advice is received. Members will be kept informed of developments concerning Bar Council’s consideration of the issue. However, I will not support any change involving incorporation which would undermine the standing of the Bar in the eyes of the community which we serve.

16 July 2013