Miscellaneous 2

Question 1

Which one of the fundamental principles is important when considering a member’s social media communications?

Answer 1

Confidentiality

Question 2

In what instance can a member divulge information without client or employer consent?

Answer 2

Where there is a legal right or duty to disclose

Question 3

If a VAT registered member’s engagement letter is silent with regard to VAT, what will the VAT treatment be for fees?

Answer 3

The fees will include VAT

Question 4

What must you do before subcontracting work relating to a client?

Answer 4

Ask client’s permission

Question 5

Your client is going to be delayed in providing some CDD docs but the work needs to commence immediately. What should you do?

Answer 5

Consider the specific reasons to the extension
Ask the MLRO to agree the extension

Question 6

How long should working papers be retained once client’s personal tax returns have been submitted?

Answer 6

For at least 7 years from the end of the tax year to which they relate, or such longer period as the rules for self assessment may require

Question 7

Under the MLFTTF regulations 2017, in what medium should records be kept?

Answer 7

The regulations do not specify the medium in which records should be kept

Question 8

True or false, you may face a fine or imprisonment for breaching the Standards for Tax Planning by promoting tax planning that is contrary to the standards?

Answer 8

False

Question 9

True or false, you should inform the CIOT if disciplinary action was brought against you for gross misconduct but it failed without foundation?

Answer 9

False

Question 10

What are the CPD requirements for a CIOT member working part time?

Answer 10

The amount required may be less if they can still met the technical and professional standards expected in their role

Question 11

True or false, a lien can be exercised over a client’s self assessment tax return?

Answer 11

True

Question 12

True or false, a lien can be exercised over working papers prepared by an adviser to complete a client’s tax return?

Answer 12

False

Question 13

True or false, a student studying for CTA exams, who is not a member of either the ATT or CIOT, is not within the CPD rules?

Answer 13

True

Question 14

True or false, a retired CTA who does voluntary unpaid tax compliance work for a charity is not within the CPD rules?

Answer 14

False

Question 15

A client has gross annual fee income of £500,000, what is the annual minimum PII cover?

Answer 15

£1,000,000

Question 16

You move from full to part time work, what level of CPD are you expected to do?

Answer 16

You may reduce your CPD hours to whatever level you judge to be appropriate

Question 17

What are appropriate reasons for a tax adviser to obtain a second opinion?

Answer 17

Where the amount of tax at stake is significant for the client
Where the matters are sufficiently important to the client

Question 18

If a tax adviser receives a formal request from HMRC, on what should a member consider obtaining specialist advice?

Answer 18

Where the data request is valid
Whether the notice requesting the information has been lawfully issued

Question 19

True or false, documents passing between a client and a non-lawyer if prepared for the purposes of giving legal advice are not privileged?

Answer 19

True

Question 20

When should additional disclosure to HMRC be considered?

Answer 20

If the filing relies on valuation
There is doubt about the correct tax treatment of an item
The amount of tax at stake is significant

Question 21

True or false, whether an amount is to be regarded as material depends on the facts and circumstances of each case?

Answer 21

True

Question 22

True or false, you need to use the CPD form provided by the CIOT/ATT to record CPD?

Answer 22

False

Question 23

True or false, PCRT applies in respect of the tripartite relationship between a member, a client and HMRC?

Answer 23

True

Question 24

What is the compulsory maximum level of excess permitted by the professional indemnity insurance regulations?

Answer 24

£20,000 per principal

Question 25

True or false, if a client refuses to disclose an error to HMRC, the member should consider obtaining specialist legal advice?

Answer 25

True

Question 26

True or false, you should consider the personal circumstances of a client when assessing their potential risk?

Answer 26

True

Question 27

What should you consider when choosing the form in which to give advice?

Answer 27

The need to seek other professional advice
The tax sophistication of the client
The technical complications present

Question 28

What is the annual minimum limit of indemnity for each and every claim?

Answer 28

£1,000,000

Question 29

What is the annual minimum limit of indemnity when the gross fee income is less than £400,000?

Answer 29

The greater of £2.5x the fee income or £100,000