Chapter 5

Question 1

What 7 things should be consdered when deciding on the form of advice provided to a client

Answer 1

Importance of transaction
specific and general nature of enquiry
Time available for development
technical complictions
existence of authorities
tax sophistication of client
Need to seek professional advice

Question 2

What should a memeber refer to when formulating advice

Answer 2

Tax legislation
HMRC practice
Case law

Question 3

Rules on changes in law after advice given

Answer 3

Caveat that the advice given is based on current laws

Unless states in engagament no onligation to inform clients on updated law however may wish to

Question 4

What must records be

Answer 4

Accessible, electronic records must be backed up in some form

Question 5

Why do we keep records

Answer 5

To communicate effectively including with HMRC

Other colleagues and successors can inform clients in future

ressolve any disputes even regarding fees

Defend any allegations of negligence

Question 6

How should we go about getting a second opinion

Answer 6

Obtained by requesting an independent view from a colleague or by instructing another member of tax counsel