Assorted questions Flashcards
What does Fidelity guarentee insurance cover?
Covers money held in trust against partners,directors and employees
What issues should you take into account when liability capping? (3)
- No engagement letter
- without an EL, there will be no mention of a liability cap in the first place - Work not covered
- Claim by a third party
What is the level of excess for liability per principle?
£20,000 per principle
How long should ‘records relating to the CDD, business relationship and occasional transactions’ be kept for?
5 years at the end of the business relationship.
According to 2017 Regulations, how should records be kept?
There is no specified medium as to how records should be kept. They should just be readily retrievable.
Who should need to recieve MLTF training?
All ‘Relevant employees’ and those who the firm feel need to receive it
When should a member seek a second opinion? (2)
- When the tax at stake is significant
2. When it is of suffiecient importance to the client
What are the 4 reasons why a member should maintain proper professional records of all their dealings with a client?
- Defend themselves from a claim against them
- Sufficient evidence for if there are any complaints
- Communicate effectively (with HMRC)
- Their colleagues and successors can access a record of the client history (if necessary)
What 2 facts must be established in regard to contigent fees
- Must remember to disclose tax avoidance schemes
2. HMRC may regard contingent fees to affecting a member’s independence
What are the general principles to advertisements or promotional material? (6)
- Reflect adversly on CIOT/ATT
- Discredit the services offered by others
- Amount to HARASSMENT
- MISLEADING
- Comply with regulatory/legislative requirements such as Advertising Standards Authority Code
- Breach client confidentiality
If you are providing tax services free of charge to your father, do you need to comply with PII?
No. As you are providing tax services free of charge (in your personal capacity) you do not need PII.
If you do pro bono work, do you need to comply with AML obligations?
No, not in the course of business
If you do honorary work, do you need to comply with AML and PII obligations?
Yes to AML.
If annual honorary income is > £1000 annually, you need to comply with PII.
Do honorary members have to take CPD?
Honorary members are exempt from CPD UNLESS they fall into regulation 1.2.1
Regulation 1.2.1 - provide tax compliance services, advice, consultancy or guidance in tax including, without limitation, those in private practice, the public sector, commerce, industry or not for profit sector.
What form must you document your CPD records?
There is no prescribed form for document CPD plan and records.
If CIOT or ATT request the member’s CPD records, they should be able to deliver it.
Who is exempt from undertaking CPD? (2)
- Fully retired members
- Honorary members who do not fall under Regulation 1.2.1.
When providing tax services to charities or non for profits, what is the member responsible for ensuring they have?
PII cover.
If they do not then you need consent to continue on that basis
A privacy notice is a document for… (2)
- explaining their rights
- how their personal data will be used
What does the TDB do? (2)
- Investigates complaints and takes action against a member who has NOT maintained the highest standards of BEHAVIOUR and PERFORMANCE required
- Review and take action as appropriate on APPEALS made against the outcome of a complaint.
Which of these constitutes suspicion? (3)
- A state of mind more definite than speculation but just falling short of evidence based knowledge
- A mere, idle wondering
- A positive state of mind of actual apprehension or mistrust
- A slight opinion, without sufficient evidence
- A vague feeling of unease
- Just a thought
- A state of mind more definite than speculation but falling short of evidence based knowledge
- A positive state of mind of apprehension or mistrust
- A slight opinion
NOT:
- A mere idle wondering
- A vague feeling of unease
