Tax law is a world of its own. It involves public finances, legal theory, administrative law, criminal law, corporate law, ethics, procedural law, civil law, among others. It’s like a sample of the broader legal system, where everyone can find a place that matches his or her own style. As in sports, there are players for every position on the field. And the way I see it, in dealing with tax law’s complex interconnected web, there are two kinds of tax lawyers: compliance lawyers, and rule-of-lawyers.

Compliance lawyers are primarily concerned with mapping the legal implications of tax laws for their clients, assisting them in adhering to existing frameworks, while considering the specific requirements to their client’s industries. They focus on current regulations and on how the law has changed, is changing or will change. They are anticipators and so, their mastery is in ex ante risk management.

Rule-of-lawyers on the other hand, are not as impressionable by the latest legal trends. They emphasize the core principles surrounding the proper application and interpretation of the law. They are often more concerned with the broader implications of legal decisions and the integrity of the tax system and their clients. Their focus is on individual cases, and how the law should be changed to ensure its integrity. They master ex post risk management.

Of course, both approaches are essential to the legal profession. And granted, there is no black and white: although each of us may fall mostly into one of these categories, most fits aren’t perfect.

What kind of tax lawyer are you? Do you know of any other types?

José Avilez Ogando

Junho de 2024