ACCA Strategic Professional · Advanced Taxation (UK) · Ethical and professional issues arising from the giving of tax planning advice
A tax adviser at a UK firm is asked by a long-standing client to prepare a self-assessment return. The adviser realises she lacks knowledge of the specific overseas tax rules involved and cannot gain it in time for the filing deadline. Which fundamental principle of the ACCA Code of Ethics is most directly engaged by this situation?
Professional competence and due care is engaged. The adviser lacks the knowledge needed for the overseas tax rules, and the Code requires members to perform only work they are competent to do, or to obtain suitable assistance, so that the client receives a properly informed service.
- AProfessional competence and due careCorrect
- BObjectivity
- CConfidentiality
- DIntegrity
Explanation
The principle of professional competence and due care requires an accountant to maintain knowledge and skill and to act diligently, and not to undertake work they are not competent to perform without proper help. Objectivity concerns bias and conflicts of interest, confidentiality concerns disclosure of information, and integrity concerns honesty. None of those is the main issue here.
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