Chapter 21

Question 1

Can filling to HMRC include estimates?

Answer 1

Yes

Question 2

Member should act in good faith in dealings with HMRC in accordance with the fundamental principle of what?

Answer 2

Integrity

Question 3

Who retains ultimate responsibility for the timely submission of a complete and correct return?

Answer 3

The taxpayer

Question 4

The photos of a trade profession vocation or property business should be computed in accordance with what?

Answer 4

GAAP - generally accepted accounting principles

Question 5

What should you do if a client is unwilling to include a tax filing, the minimum info required by law?

Answer 5

Should follow guidance in Help sheet C: Dealing with errors

Question 6

What are the factors involved in making a decision on whether to fully disclose to HMRC

Answer 6

• A filing relies on valuation
• The term of the applicable law
• The view taken by the member
• The extent o any doubt that exists
• The manner in which disclosure is to be made
• The size and gravity of the item in question

Question 7

When should a member consider additional disclosure?

Answer 7

When there is doubt as to the correct treatment of an item of income / expenditure

Question 8

When should a member include attachments to a filing?

Answer 8

Where the taxpayer feels it is crucial to provide

Question 9

If a client has relied on HMRC guidance which is clear and unequivocal but conflicts with law - what can happen?

Answer 9

A judicial review claim could be possible

Question 10

Is the client liable if not review filing before filed?

Answer 10

Yes - as long as stated in engagement letter

Question 11

If a member is approving a tax return on behalf of a client, what should they consider?

Answer 11

• Their legal authority to do so
• The process where the client will review & take responsibility for the contents of return
• Legal implication of approving on behalf

Question 12

Where a second opinion is needed - who should they get it from?

Answer 12

Someone suitably qualified and experienced who is subject to requirements of PCRT

Question 13

A member should satisfy themselves that third-party advice is reasonable by considering what?

Answer 13

• Does it accord with their understanding of the law?

* Is the person giving advice appropriately qualified and a member of a PCRT body or equivalent regime?

Question 14

What does Help Sheet A provide?

Answer 14

It provides guidance on the application of the PCRT fundamental principles and standards for tax planning when dealing with day-to-day work of filing tax information