Introduction to PCRT Flashcards
What are 3 main parties that can be affected by PCRT?
HMRC, clients and the public
According to PCRT, an ATT member with concerns as to the ethical and legal considerations in a particular situation should seek advice from whom?
From the ATT, and if appropriate, their lawyer
True or false, the PCRT provides an exhaustive list of circumstances which may pose a threat to the fundamental principles and standards?
False
Who do the guidelines in the PCRT apply to?
Members in professional practice
Members not in practice but who practise tax
What should you do if your employer is not prepared to follow the fundamental principles?
Contact professional body and seek legal advice if necessary
Who was not involved in the preparation of PCRT?
Chartered accountants of ireland
What might happen if you fail to adhere to PCRT?
Disciplinary action
PCRT advises that a member giving a second opinion to a client should consider whether this will breach which principle?
Confidentiality
When acting within the anti-money laundering regime, PCRT draws members’ attention to the choice between which two aspects of public interest?
The public interest in reporting knowledge, or suspicions of, criminal activity to the authorities
The public interest in clients receiving advice in confidence
In what circumstances may you disclose confidential client information without the prior consent of the client?
When there is a legal right to disclose
When there is an express duty to disclose
True or false, it is permissible to disclose confidential client information to explain to HMRC why you have ceased to act for a client?
False
True or false, is is permissible to disclose confidential client information to enable the adviser to defend themselves in disciplinary proceedings?
True
What must you consider according to the AML regime, when determining whether a disclosure must be made to NCA?
The public interest in reporting knowledge or suspicions of criminal activity to the authorities
The public interests in clients receiving advice in confidence
What is are examples of being ‘client specific’ according to the standard for tax planning?
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
What are the standards for tax planning?
Client specific
Lawful
Disclosure and transparency
What does the standard for tax planning ‘disclosure and transparency’ mean?
Tax advice must not rely for its effectiveness on HMRC having less than the relevant facts. Any disclosure must fairly represent all relevant facts.
The standards for tax planning build on which 3 fundamental principles?
Integrity
Professional competence and due care
Professional behaviour
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?
When it would be reasonable on the facts
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?
The members should include this fact as part of the advice
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?
Paperwork must be completed where it enables the member to identify and support any judgements made
