Additional PCRT principles

Question 1

Client Specific

Answer 1

Tax planning must be specific to the particular client’s facts and circumstances. Clients must be alerted to the wider risks and the implications of any courses of action.

Question 2

Lawful

Answer 2

At all times members must act lawfully and with integrity and expect the same from their clients.

• Tax planning should be based on a realistic assessment of the facts and on a credible view of the law.
• Members should draw their clients’ attention to where the law is materially uncertain, for example because HMRC is known to take a different view of the law.
• Members should consider taking further advice appropriate to the risks and circumstances of the particular case, for example where litigation is likely.

Question 3

Disclosure and Transparency

Answer 3

Tax advice must not rely for its effectiveness on HMRC having less than the relevant facts. Any disclosure must fairly represent all relevant facts

Question 4

Tax planning arrangements

Answer 4

Members must not create, encourage or promote tax planning arrangements or structures that:

i) set out to achieve results that are contrary to the clear intention of Parliament in enacting relevant legislation;

and/or

ii) are highly artificial or highly contrived and seek to exploit shortcomings within the relevant legislation

Question 5

Professional Judgement and appropriate documentation

Answer 5

Applying these requirements to particular client advisory situations requires members to
exercise professional judgement on a number of matters. Members should keep notes on a
timely basis of the rationale for the judgments exercised in seeking to adhere to these
requirements.