Miscellaneous 2 Flashcards
Which one of the fundamental principles is important when considering a member’s social media communications?
Confidentiality
In what instance can a member divulge information without client or employer consent?
Where there is a legal right or duty to disclose
If a VAT registered member’s engagement letter is silent with regard to VAT, what will the VAT treatment be for fees?
The fees will include VAT
What must you do before subcontracting work relating to a client?
Ask client’s permission
Your client is going to be delayed in providing some CDD docs but the work needs to commence immediately. What should you do?
Consider the specific reasons to the extension
Ask the MLRO to agree the extension
How long should working papers be retained once client’s personal tax returns have been submitted?
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
Under the MLFTTF regulations 2017, in what medium should records be kept?
The regulations do not specify the medium in which records should be kept
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?
False
True or false, you should inform the CIOT if disciplinary action was brought against you for gross misconduct but it failed without foundation?
False
What are the CPD requirements for a CIOT member working part time?
The amount required may be less if they can still met the technical and professional standards expected in their role
True or false, a lien can be exercised over a client’s self assessment tax return?
True
True or false, a lien can be exercised over working papers prepared by an adviser to complete a client’s tax return?
False
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?
True
True or false, a retired CTA who does voluntary unpaid tax compliance work for a charity is not within the CPD rules?
False
A client has gross annual fee income of £500,000, what is the annual minimum PII cover?
£1,000,000
You move from full to part time work, what level of CPD are you expected to do?
You may reduce your CPD hours to whatever level you judge to be appropriate
What are appropriate reasons for a tax adviser to obtain a second opinion?
Where the amount of tax at stake is significant for the client
Where the matters are sufficiently important to the client
If a tax adviser receives a formal request from HMRC, on what should a member consider obtaining specialist advice?
Where the data request is valid
Whether the notice requesting the information has been lawfully issued
True or false, documents passing between a client and a non-lawyer if prepared for the purposes of giving legal advice are not privileged?
True
When should additional disclosure to HMRC be considered?
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
True or false, whether an amount is to be regarded as material depends on the facts and circumstances of each case?
True
True or false, you need to use the CPD form provided by the CIOT/ATT to record CPD?
False
True or false, PCRT applies in respect of the tripartite relationship between a member, a client and HMRC?
True
What is the compulsory maximum level of excess permitted by the professional indemnity insurance regulations?
£20,000 per principal
True or false, if a client refuses to disclose an error to HMRC, the member should consider obtaining specialist legal advice?
True
True or false, you should consider the personal circumstances of a client when assessing their potential risk?
True
What should you consider when choosing the form in which to give advice?
The need to seek other professional advice
The tax sophistication of the client
The technical complications present
What is the annual minimum limit of indemnity for each and every claim?
£1,000,000
What is the annual minimum limit of indemnity when the gross fee income is less than £400,000?
The greater of £2.5x the fee income or £100,000
