126Loss of client legal privilege—related communications

126 Loss of client legal privilege—related communications and documents (1) If, because of the application of a relevant section, this division does not prevent the presenting of evidence of a communication or the contents of a document, the relevant section does not prevent the presenting of evidence of another communication or document if it is reasonably necessary to enable a proper understanding of the communication or document. A lawyer advises his client to understate her income for the previous year to evade taxation because of her potential tax liability ‘as set out in my previous letter to you dated 11 August 1994’. In a proceeding against the taxpayer for tax evasion, evidence of the contents of the letter dated 11 August 1994 may be admissible (even if that letter would otherwise be privileged) to enable a proper understanding of the second letter. (2) In this section: relevant section means: (a) section 121 (Loss of client legal privilege—generally); or (b) section 122 (Loss of client legal privilege—consent and related matters); or (c) section 123 (Loss of client legal privilege—defendants); or (d) section 124 (Loss of client legal privilege—joint clients); or (e) section 125 (Loss of client legal privilege—misconduct).