Chapter 22

Question 1

What things should you consider when tax planning?

Answer 1

• Does engagement letter fully cover cope of planning?
• Have u taken Standards for Tax planning & fundamental Principles into account?
• How tax sophisticated is client?
• Has client made clear what they want to achieve?
• What’re issues involved with planning?
• Risks associated - strength of legal interpretation
• Reputational risk to the client
• Is second opinion necessary?
• Are you satisfied that the client understands planning?

Question 2

What does DASVOIT stand for?

Answer 2

Disclosure of Tax Avoidance Schemes for VAT and other indirect Taxes

Question 3

What is Hansard?

Answer 3

It’s the publication which records verbatim all proceedings in parliament.

It records what those promoting or supporting the Bill may have said the purpose of the legislation was

Question 4

Members are advised in PRPG Chapter 5 paragraph 5.7.3 to ensure what?

Answer 4

That the client’s objectives in seeking the advice, as well as its purpose is set out in either the engagement letter or in the advice itself

Question 5

Do you have to disclosure and account for any commission?

Answer 5

Yes

Question 6

Can you received commission if you are asked to give a second opinion?

Answer 6

Yes - you must disclose

Question 7

Do you need to make sure client aware of potential risks of proceeding without full advice?

Answer 7

Yes

Question 8

Can you make a claim on a tax return if suspect constitutes evasion?

Answer 8

No - you can only advise the client of your concerns

Question 9

What does help sheet B provide?

Answer 9

Provides guidance on the application of the PCRT fundamental principles and standard for tax planning