Introduction to PCRT

Question 1

What are 3 main parties that can be affected by PCRT?

Answer 1

HMRC, clients and the public

Question 2

According to PCRT, an ATT member with concerns as to the ethical and legal considerations in a particular situation should seek advice from whom?

Answer 2

From the ATT, and if appropriate, their lawyer

Question 3

True or false, the PCRT provides an exhaustive list of circumstances which may pose a threat to the fundamental principles and standards?

Answer 3

False

Question 4

Who do the guidelines in the PCRT apply to?

Answer 4

Members in professional practice
Members not in practice but who practise tax

Question 5

What should you do if your employer is not prepared to follow the fundamental principles?

Answer 5

Contact professional body and seek legal advice if necessary

Question 6

Who was not involved in the preparation of PCRT?

Answer 6

Chartered accountants of ireland

Question 7

What might happen if you fail to adhere to PCRT?

Answer 7

Disciplinary action

Question 8

PCRT advises that a member giving a second opinion to a client should consider whether this will breach which principle?

Answer 8

Confidentiality

Question 9

When acting within the anti-money laundering regime, PCRT draws members’ attention to the choice between which two aspects of public interest?

Answer 9

The public interest in reporting knowledge, or suspicions of, criminal activity to the authorities

The public interest in clients receiving advice in confidence

Question 10

In what circumstances may you disclose confidential client information without the prior consent of the client?

Answer 10

When there is a legal right to disclose
When there is an express duty to disclose

Question 11

True or false, it is permissible to disclose confidential client information to explain to HMRC why you have ceased to act for a client?

Answer 11

False

Question 12

True or false, is is permissible to disclose confidential client information to enable the adviser to defend themselves in disciplinary proceedings?

Answer 12

True

Question 13

What must you consider according to the AML regime, when determining whether a disclosure must be made to NCA?

Answer 13

The public interest in reporting knowledge or suspicions of criminal activity to the authorities
The public interests in clients receiving advice in confidence

Question 14

What is are examples of being ‘client specific’ according to the standard for tax planning?

Answer 14

Where advice is generic, it should be suggested that clients take further advice before acting
Members should not rely on unrealistic or unreasonable assumptions in giving advice
Clients should be alerted to the wider implications of any course of action following tax advice

Question 15

What are the standards for tax planning?

Answer 15

Client specific
Lawful
Disclosure and transparency

Question 16

What does the standard for tax planning ‘disclosure and transparency’ mean?

Answer 16

Tax advice must not rely for its effectiveness on HMRC having less than the relevant facts. Any disclosure must fairly represent all relevant facts.

Question 17

The standards for tax planning build on which 3 fundamental principles?

Answer 17

Integrity
Professional competence and due care
Professional behaviour

Question 18

When is it considered reasonable for a tax adviser to rely upon assumptions when providing tax planning advice, according to the ‘client specific’ standard for tax planning?

Answer 18

When it would be reasonable on the facts

Question 19

What does the ‘lawful’ standard for tax planning advise a member to do when providing planning advice where HMRC’s view on the matter is uncertain or unknown?

Answer 19

The members should include this fact as part of the advice

Question 20

According to PCRT, what is the requirement for a member to complete appropriate documentation when providing tax planning advice under the standards for tax planning?

Answer 20

Paperwork must be completed where it enables the member to identify and support any judgements made