Chapter 18 PCRT: Introduction to PCRT Flashcards
18.1 Foreword
PCRT sets out fundamental principles and standards for tax planning all members should follow. Tax advisers have a responsibility to serve their clients’ interests whilst upholding the professions reputation and need to consider the account of the wider public interest.
PCRT consists of 5 principles and five standards. PCRT applies to all members providing UK tax matters regardless of contracts of employment, membership or other professional organisations. PCRT is taken into consideration to determine whether disciplinary action is required and if the member still upholds the standards required for membership. A member must never knowingly be involved in tax evasion.
18.2 Scope
Purpose of PCRT is to advice members on their professional conduct in relation to tax and in the relationship between a member, client and HMRC. If a member fails to comply with the principles and standards for tax planning in the PCRT they are liable for disciplinary proceedings.
If in doubt of ethical or legal considerations of a case, a member should seek advice from their professional body and their legal advisers where appropriate. A member must fulfil their obligations under AML, they should refer to the Treasury approved CCAB Anti-money laundering guidance for the Tax and Accountancy sector. PCRT does not override legal professional privilege or a member’s professional duties. In any conflict of general law, statutory regulation or professional regulation, that should prevail over PCRT.
18.3 Application to all members
The PCRT is primarily applicable to members in the professional practice, the principles apply to all members who practice in tax including:
• Employees attending to the tax affairs of their employer or of a client
• Those dealing with the tax affairs of themselves or others like family, friends, charities etc
• Those working in HMRC or other public sector bodies or government departments
Where a member’s employer does not follow the principles, they should contact their professional body and/or seek legal advice. The principles and standards apply to devolved bodies in the UK. HMRC acknowledges PCRT as a basis for dealings between members and HMRC.
18.6 Abbreviations
- CCAB – consultative committee of accountancy bodies
- DOTAS – disclosure of tax avoidance schemes
- GAAR – general anti-abuse rule in finance act 2013
- MLRO – money laundering reporting officer
- NCA – national crime agency (previously the Serious Organised Crime Agency)
- POTAS – promoters of tax avoidance schemes
- SRN – scheme reference number
