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ACCA Strategic Professional · Advanced Taxation (UK) · Ethical and professional issues arising from the giving of tax planning advice

Priya, a tax adviser, is asked by a client, Kestrel plc, to implement a scheme that produces a large UK corporation tax saving. The scheme has no commercial purpose other than the tax saving and relies on an interpretation of legislation that Priya believes is contrary to the intention of Parliament. Which statement is most consistent with the ACCA Code and the Professional Conduct in Relation to Taxation (PCRT) standards?

Priya should not promote or implement the scheme. Planning that is artificial, has no commercial purpose and relies on a position she believes is unsustainable would breach the principles of integrity and professional behaviour, and a client waiver or lack of HMRC guidance does not change that.

  1. APriya may advise on the scheme provided the client is told the interpretation is aggressive and the client signs a waiver
  2. BPriya should not promote or implement the scheme if it is artificial or relies on a position she believes is unsustainable, as this would breach integrity and professional behaviourCorrect
  3. CPriya may implement it because tax planning is always legitimate if it is not strictly unlawful
  4. DPriya may implement it if HMRC has not published guidance specifically prohibiting it

Explanation

Members must not create, encourage or promote tax planning that is highly artificial or contrived, or based on an interpretation they do not believe is sustainable. Integrity and professional behaviour prevent this. A client waiver or the absence of HMRC guidance does not remove the member's own obligation.

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