ACCA Strategic Professional · Advanced Taxation (UK) · Ethical and professional issues arising from the giving of tax planning advice
A tax adviser at a firm is asked by a client to prepare a tax plan. The adviser realises the proposed arrangement would be technically lawful but is designed solely to obtain a tax advantage that Parliament clearly did not intend. Which fundamental principle of the ACCA Code of Ethics is most directly engaged by the adviser's duty not to be associated with arrangements that are misleading or that damage the profession's reputation?
Professional behaviour is the principle most directly engaged. It requires compliance with laws and regulations and the avoidance of conduct that could discredit the profession. Promoting or being linked to arrangements designed to defeat the clear intent of Parliament risks bringing the profession into disrepute, even where the scheme is technically lawful.
- AProfessional behaviourCorrect
- BConfidentiality
- CObjectivity
- DProfessional competence and due care
Explanation
Professional behaviour requires compliance with relevant laws and avoiding conduct that discredits the profession. Associating with aggressive arrangements that are contrary to the intent of legislation damages the profession's reputation. Confidentiality concerns disclosure of information, objectivity concerns bias and conflicts, and competence concerns skills and diligence, so they are not the main principle here.
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