Chapter 22 PCRT: Tax advice help sheet Flashcards
22.10 Tax planning and advice
In contrast to tax evasion, tax planning is legal, but members must not create, encourage or promote tax planning arrangements that try achieving results contrary to the clear intention of Parliament in enacting legislation and/or are highly artificial and seek to exploit shortcomings within the relevant legislation. Things to consider:
• Checking the engagement letter covers the scope
• Taking the standards for tax planning and the fundamental principles into account
• How tax sophisticated is the client
• Has the client made the aim of the planning clear
• The issues of implementation of the planning
• The risks involved of the planning and to make the client aware
• Are the arrangements in line with applicable codes of conduct or ethical guidelines or stances
• Are you satisfied that the client understands the planning proposed
• Have you documented the advice given and the reasoning behind it
