Miscellaneous Flashcards
In what instance does HMRC supervise a business for MLTF Transfer of Funds Regulations 2017 purposes?
HMRC supervises those businesses which are not members of, or otherwise regulated by, one of the approved bodies
True or false, PRPG obliges members giving advice by telephone to confirm it in writing?
False
Which of the following (fundamental principles / requirement to have PII / AML legislation) must a member employed in Commerce and Industry comply with, assuming their employer is not regulated?
The fundamental principles
True or false, you must inform or notify the CIOT if you get disqualified from being a trustee?
True
True or false, you must inform or notify the CIOT if you get fined £200 in a magistrates’ court for a ‘summary only’ road traffic offence?
False
For which use of data do members require appropriate consent for?
Marketing purposes
In what situations according to PRPG might there be a requirement for additional disclose in relation to a tax return?
When there is inherent doubt on the VAT liability of a particular transaction
Where HMRC have published its interpretation but the client proposes to adopt a different view
How long must records relating to CDD, the business relationship and occasional transactions be kept for?
5 years from the end of the client relationship
What documents does a tax adviser need to see before beginning to act for a client who is employed and not classed as high risk?
Valid photo ID such as a passport
You have ceased to act for a client but have received a formal request from HMRC for information relating to the former client, what should you do?
Provide the information requested
Refuse to provide any information protected by legal privilege
Your have a new client and notice an error made by their previous tax adviser, what should you do?
Tell the client
Who does a tax adviser owe a duty of confidentiality to and for how long?
To their client or employer, this applies indefinitely
You have a new client and their previous adviser informs you that they are not authorised to correspond with you in relation to your new client’s tax affairs. How should you proceed?
Ask the client why they will not allow their previous adviser to correspond with you
What are the secondary pieces of documentation for client verification of high risk clients?
Current bank statement
End of year tax deduction certificates
Current utility bill
What should a member be alert to in terms of close or long association with a client or family relationships?
Independence and objectivity
Your client has admitted to including some incorrect information in a claim to HMRC. Assuming the sum is significant, what should you do (in order)?
- Check whether specific authorisation from the client is required to make the disclosure
- Advise your client, in writing, to make full disclosure
- Notify the client that you must cease to act
- Decide whether a report should be made to MRLO
What does the case Langham v Veltema relate to?
Finality and discovery
Which two fee arrangements might affect a member’s objectivity or present a conflict of interest?
Contingent fees
Retainer arrangements
How should a member file digital returns for a client?
File in their capacity as an agent and use the facilities provided for agents to avoid knowing or using the client’s personal access credentials
When is it possible to represent a client before the FTT?
Only with their authorisation and if you are competent
True or false, a client account can be a deposit or a current account?
True
True or false, the CIOT is classed as a designated professional body under the FCA rules?
False
True or false, the CIOT is classed as an authorised supervisory body for anti money laundering purposes?
True
What two factors should be taken into account when exercising a lien?
Whether the potential loss of goodwill outweighs the financial considerations
Whether all possible steps have been taken to remove the client’s sense of grievance regarding an issued bill
You are not a member of a DPB but work for a firm of ICAWE chartered accountants, a tax client has been consulted by a financial adviser and asks for your opinion on setting up a pension, what can you advise on?
You can comment on the advice given by the authorised financial adviser and advise on the benefits of setting up a pension
When should a tax adviser issue a detailed bill?
When fees are charged on time
Should you report to the NCA based on the suspicions of HMRC?
No, only ever make a report to the NCA based on your own supsicions
What is the role of the MRLO?
Responsible for internal controls and risk management
Decide in each case arising whether to make a SAR to the NCA
You suspect the senior partners of your firm are acting in serious breach of several guidelines contained in PCRT, what should you do?
Attempt to persuade the senior partners to comply with the rules
Seek guidance from the CIOT
Consider taking legal advice
You are taking two months off work, how does this affect your CPD obligations?
You may suspend CPD for the two months but you are encouraged to undertake more CPD when you return to work
True or false, the PCRT does not cover errors made by the client, only by the tax adviser, HMRC and other third parties?
False
What are the primary objectives of a tax adviser in relation to dealing with errors?
To give the client appropriate advice
To seek to persuade the client to behave correctly
You are an ATT member and do paid work in relation to child benefit and tax credits. What is the requirement for PII?
PII is required for both of these services
What is recommended in PCRT as the best way to deal with the disclosure of HMRC errors?
Disclose errors after specifically confirming it with the client or include a general authority to disclose in the EL
True or false, a member is responsible for their own work, that of their employees and subcontractors?
True
What must a member not do in relation to the fundamental principle of integrity?
A member must not knowingly fail to provide relevant information
A member must not obtain work in any unprofessional matter
A member must not knowingly make any statement which is misleading
What is pro bono work?
Where absolutely no payment is made
What does professional behaviour refer to?
Taking due care in professional conduct and professional dealings.
How should a member approach work delegated to a junior?
A member should exercise sufficient supervision to ensure delegated work to a junior is satisfactory
True or false, a member who is with a firm which is a member of the DPB may carry out all exempt regulated activites?
True
True or false, membership of the CIOT or ATT gives authority to provide all the services regulated under FSMA 2000?
False
Why must you keep professional records?
To defend any allegation of negligence
To access records for future client service
To resolve complaints
True or false, FATCA status can be shared with other financial institutions?
True
True or false, verbal instruction is a proper form of authorisation to withdraw client money?
False
What can a lien not be exercised over?
VAT records
Books of a registered company that have to be available for public inspection
What should a member do if they find themselves in a situation that threatens their compliance with PRPG?
Disassociate themselves from the matter
Seek alternative employment
True or false, fees received for subcontracted work should be included in gross fee income for PII purposes?
True
What factors need to be considered when introducing a client to another adviser’s planning arrangement?
Is the promoter subject to a monitoring notice within the POTAS regime?
Is the arrangement client specific rather than a generic packaged scheme?
Is the arrangement compatible with the standards of tax planning?
Does a member ALWAYS need to engage an agent when in a tax dispute with HMRC?
No
When may legal privilege be overridden?
If it is set out in legislation
True or false, an MLRO can appoint delegates and deputies to undertake their role?
True
How should an LLP be treated for the purposes of establishing beneficial owners?
As a private company
