Ethics

Question 1

What should you do when a client does not disclose error to HMRC

Answer 1

• Error made by client must be disclosed to HMRC
• we can’t disclose the error unless we have client’s permission
• we can’t continue to act for the client until the disclosure is made
• tell the client of the consequent
  1. if they refuse to disclose - let HMRC know we no longer act for the client - don’t need to give any reason
  2. Tax evasion - which could result to criminal proceedings
• inform our firms MLO, but not tip off client

Question 2

Matters to consider before becoming tax advisors for client

Answer 2

• follow the ACCA code of ethics
• evidence of clients identity and address
• if it’ll create a threat to compliance with the fundamental principles of professional ethics
• not accept unless threats reduced to an acceptable level
• principles include : integrity , professional competence and due care
• must assure ourselves that the client is not involved in any money laundering
• letter of engagement

Question 3

What are the actions to take before becoming tax advisers to new clients

Answer 3

• contacting existing tax advisors
• if client refuse to give permission = consider refusing to act for the client

Question 4

Can we use information from previous clients to help advise us on new clients

Answer 4

• ACCA Code of Conduct incl confidential
• confidential info = refrain from using it
• applied to both ex clients and continuing clients
• can use experience and expertise we have gained from advising client

Question 5

We have many existing clients which trade from permanent establishments situated overseas, and a few years ago we had a client with a presence in the country of Garia.

Identify the points which should be made in order to explain the extent to which REP Ltd can benefit from the knowledge our firm has gained from advising other clients.

Answer 5

• we have experience and advised clients trading from PE in country overseas
• we can use this general experience & expertise for the benefit of REP ltd
• but can’t use any confidential information
• confidentiality is one of the fundamental principles of ethics within ACCA code of ethics and conduct
• confidentiality applies to both ex client and continuing clients