Course Notes Flashcards
What are the 5 PCRT standards for tax planning?
Client specific
Lawful
Disclosure & Transparency
Advising on tax planning arrangements
Professional judgement & appropriate documentation
Are the PCRT standards instead of the fundamental principles?
No they are supplementary
What are the 6 things to consider with conflict resolution?
Relevant facts
Relevant parties
Ethical issues involved
Fundamental principles related to the matter in question
Established internal procedures
Alternative courses of action
3 steps when accepting a new client
Confirmation of the clients identity
Consideration of threats to the fundamental principles
Issuance of an engagement letter
What is the minimum about of indemnity insurance required byICAEW?
Gross fee income less than 600k = 2.5 x gross fee income (minimum 100k)
Gross fee income more than 600k = minimum 1.5million
5 ways must comply with GDPR
Individuals have to opt in
Privacy notices must be clear
Data must not be retained for longer than necessary
Compliance is monitored by the Information Commissioners Office
A Data Protection Officer (DPO) must be appointed by an organisation handling data and they must notify the ICO to be entered into the register of data controllers
What precautions can be taken to prevent unauthorised access to client data?
Passwords kept safe from unauthorised use
IT equip kept physically secure
Unusual activity on HMRC online account reported immediately
Awareness of how to deal with phishing emails
How long do breaches of GDPR have to be reported? What are the related fees?
72 hours and tiered fines up to 4% of annual global turnover (or 20mil euro if higher)
If the client provides incorrect or misleading data leading to an underpayment of tax what steps should be taken?
Advise the client to inform HMRC or request consent to do so on their behalf
Explain the consequences of a failure to disclose
If the client refuses to co-operate, resign from your position as their adviser and inform HMRC that you have resigned. Do not tell HMRC the reason.
Consider the need to submit a suspicious activity report to NCA
Can a firm be done for confidentiality breach if they report through an SAR to NCA?
Yes if there is not reasonable grounds for suspicion
What are the penalties for money laundering?
14 years main offence
5 years failure to disclose
2 years for tipping off
What are the different levels of the Economic Crime Levy?
Small = Exempt
Medium = £10k
Large = £36k
Very large = £250k
Define tax planning
Legal tax reduction based on the intended consequence of legislation
Examples of tax planning
Making pension contributions
ISAs
Define tax avoidance
Legal tax reduction involving bending the rules and obtaining a tax advantage not intended by Parliament