Tax Advice

Question 1

What is the purpose of the standards for tax planning?

Answer 1

To address behaviours which are damaging to the tax profession

Question 2

A client wishes to engage in tax planning that their adviser does not consider to be appropriate, but which is in the scope of the engagement letter. What is the recommended course of action?

Answer 2

The adviser should recommend that the client seeks alternative advice and document this in writing

Question 3

What are the sanctions for encouraging tax planning which is contrary to the standards for tax planning?

Answer 3

Reprimand and exclusion

Question 4

According to help sheet B - tax advice, you are offered a commission to help another adviser’s client, what is the position regarding commission?

Answer 4

You are not permitted to accept the commission in these circumstances

Question 5

You suspect tax planning for a particular client case is contrary to the intention of parliament, what should you consult according to help sheet B: tax advice?

Answer 5

The legislation itself
Any associated explanatory notes issued at the time of legislation’s enactment

Question 6

What is the focus of the FAQs on tax advice in help sheet b?

Answer 6

The behaviour of the tax adviser

Question 7

What should you consider when providing tax planning advice?

Answer 7

The tax sophistication of the client
The potential application of the GAAR
The public reputational risk to the client and the member

Question 8

True or false, you must consider the bona fide status of the advice being provided when giving tax advice?

Answer 8

False

Question 9

When can you act for a client whom you know has committed tax evasion?

Answer 9

When they are rectifying their affairs

Question 10

What must a member not do when providing advice on tax planning?

Answer 10

Assist in tax evasion
Create, encourage or promote tax planning arrangements that are highly artificial