We’ve previously blogged about this new code of conduct last year when the consultation was being carried out by the Association of Accounting Technicians, Association of Chartered Certified Accountants, Association of Taxation Technicians, Charted Institute of Taxation, the Society of Trust and Estate Practitioners and the Institute of Chartered Accountants in England and Wales.
A number of the Bedrock team are members of one or more of these organisations and as our work brings us into contact with accountants and clients concerned about tax matters we feel it’s worth revisiting the subject.
The code of conduct covers all aspects relating to taxation but it’s the new section ‘standards for tax planning’ which is of particular interest to us. Largely in response to public opinion and media coverage this section sets out standards designed to protect the reputation of the various organisations’ members and provide clarity.
The standards are as follows:
- Client specific: Tax planning must be specific to the particular client’s facts and circumstances. Clients must be alerted to the wider risks and the implications of any courses of action.
- Lawful: At all times members must act lawfully and with integrity and expect the same from their clients. Tax planning should be based on a realistic assessment of the facts and on a credible view of the law. Members should draw their clients’ attention to where the law is materially uncertain, for example because HMRC is known to take a different view of the law. Members should consider taking further advice appropriate to the risks and circumstances of the particular case, for example where litigation is likely.
- Disclosure and transparency: Tax advice must not rely for its effectiveness on HMRC having less than the relevant facts. Any disclosure must fairly represent all relevant facts.
- Tax planning arrangements: Members must not create, encourage or promote tax planning arrangements or structures that i) set out to achieve results that are contrary to the clear intention of Parliament in enacting relevant legislation and/or ii) are highly artificial or highly contrived and seek to exploit shortcomings within the relevant legislation.
- Professional judgement and documentation: Applying these requirements to particular client advisory situations requires members to exercise professional judgement on a number of matters. Members should keep notes on a timely basis of the rationale for the judgments exercised in seeking to adhere to these requirements.
Bedrock has never offered any tax planning arrangements with the specific purpose of tax avoidance or evasion. As such we already work within this code of conduct and are happy to support accountants and their clients who need support when getting their affairs in order with HMRC.
We have expertise dealing with the settlement of EBTs and closure of trusts when businesses have previously used tax planning structures. Take a look at this recent blog on the subject. Or give us a call if you want to discuss how we maybe able to assist.
