Ethics for Tax Advisors

Objectives

In this session, we outline the key ethical requirements for professional firms in relation to Professional Conduct in Relation to Taxation (PCRT). We also consider similar requirements imposed on firms who are not a member of a relevant professional body, in the form of HMRC’s Standard for Agents. The session will include details of any new guidance or updates issued to either standard in 2024.

Key Topics

UNDERLYING ETHICAL FRAMEWORK

• ICAEW
• ACCA
• CIOT / ATT
• ICAS
• The meaning of ethics
• ICAEW members duty to report
• Source of ethical principles and rules
• IESBA Code
• ICAEW
• ACCA
• Scope and focus

PROFESSIONAL CONDUCT IN RELATION TO TAXATION

• Overview
• The fundamental principles
• The standards for tax planning
• Helpsheets
• Additional support
• HMRC’S STANDARD FOR AGENTS
• PCRT Fundamental Principles – 3 of 5
• Standards for tax planning
• Monitoring and breaches
• First Tier Tax Tribunal

RAISING STANDARDS IN THE TAX ADVICE MARKET

• Are we moving towards regulation?
• What would regulation involve?
• What has happened so far?

COMMON ISSUES ARISING IN PRACTICE AND HOW TO DEAL WITH THEM

• Submission of tax information and tax filings
• Digital filing and use of agent facilities only
• Responsibilities: Taxpayer’s responsibility
• Client approval of tax filings
• Responsibilities: Tax agent’s responsibility
• Client care and responding to pressure
• There is no concept of materiality!
• Making adequate disclosure
• Thorough review procedures
• Risk of over-reliance on software
• Retaining notes, including of your thought processes in judgemental areas
• Use of checklists
• Professional competence
• Tax Advice
• Tax evasion
• Tax planning and advice
• The Mehjoo case
• Tax Avoidance Schemes – watching out for warning signs!
• Back to basics - Reviewing work
• Engagement terms
• Dealing with errors
• Establishing the facts
• Ceasing to act
• Professional Clearance after ceasing to act
• Correcting errors outside of time limits for amendment
• What if the error is due to a mistake made by the advising firm?
• What do other firms do?
• Request for data by HMRC – including compliance checks
• HMRC One to Many Agent letters

PCRT REQUIREMENTS IN RELATION TO RESEARCH & DEVELOPMENT RELIEF CLAIMS

PCRT AND ANTI-MONEY LAUNDERING OBLIGATIONS
What are the money laundering risks in the tax sector?

• Tax AML Offences
• Corporate offences for failing to prevent criminal facilitation of tax evasion

THE MARCH OF THE ROBOTS: ARTIFICIAL INTELLIGENCE AND PCRT

• Using AI to answer client queries and/or process tax work
• Dealing with clients who may utilise generative AI in the production of their accounting records and tax documentation
• Working with software or tools that incorporate AI