CH20- Standards for tax planning

Question 1

5 standards

Answer 1

Client specific
Lawful
Disclosure and transparency
Advising on tax planning arrangements
Professional judgement and appropriate documentation

Question 2

Client specific

Answer 2

Planning must be tailored to clients needs and circumstances
Wider risks to be highlighted
If advice depends on assumptions, need to be highlighted

Question 3

Lawful

Answer 3

Uncertainties highlighted to client
Alert client to situations where HMRC holds different view to member and likely costs associated in any disputed to resolve
If view is taken which is different to HMRC view, risk of challenge should be explained
If risks are sig, consider taking further advice

Question 4

Disclosure and transparency

Answer 4

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

HMRC must have all the facts
May be appropriate to consider even fuller disclosure than legally required

Question 5

Advising on tax planning arrangements

Answer 5

No arrangements which run counter to clear intention of Parliament
No arrangements which are artificial and/or contrived
Document rationale behind all decisions
Outline risks and uncertainties for client and provide assessment of relevant disclosures required

Question 6

Professional judgement and appropriate documentation

Answer 6

Maintain timely records of rationale behind all judgements taken

Question 7

What fund principles does the standards for tax planning build upon

Answer 7

Integrity
Prof behav
Prof comp and due care