Ethics Flashcards
What are the 5 further standards for tax?
Client specific
Lawful
Disclosure and transparency
Advising on tax planning arrangements
Professional judgement and appropriate documentation
What are the factors in the conflict resolution process?
Relevant facts and parties
Ethical issues
Principles related
Internal procedures
Alternative actions
What are the steps to the conflict resolution process?
Consult with appropriate persons/ legal advisors
Get professional advice
Document issues
Refuse to associate with matter
Resign
When may an accountant disclose confidential information?
Permitted by law and authorised by client
Required by law
Professional duty or right to disclose
What are the factors to consider regarding disclosure?
If interests of any parties will be affected
All information known
Communication expected and addressed to
Appropriate recipients
Information privileged
Obligations and implications of disclosures
What are the safeguards to conflict of interest?
Notify client
Separate engagement teams
Clear guidelines
Agreements
Review of application of safeguards
Resign
What is considered as money laundering by the POCA?
Conceal, disguise, convert, transfer and remove criminal property
Become involved in criminal property
Have possession of criminal property
What are tax examples of money laundering?
Misleading HMRC by suppressing information they are entitled to or providing false information
What are the penalties for money laundering?
14 years prison for offences
5 years for failure to report
2 years for tipping off
What is tax evasion?
This is illegal
Misleading HMRC deliberately by suppressing information or providing false information
Minor issues settled out of court via penalties
Under money laundering
What is tax avoidance?
This is legal
Promoters of tax avoidance schemes must disclose to HMRC so loopholes can be closed
When are tax avoidance transactions disregarded?
When they are preordained or designed with the main aim of avoiding tax
GAAR rule introduced
