ACCA Strategic Professional · Advanced Taxation (UK) · Ethical and professional issues arising from the giving of tax planning advice
Which statement is correct about a tax adviser who ceases to act for a client and is asked by the incoming adviser for professional clearance?
The outgoing adviser should respond to the clearance request. Relevant information may only be given with the client's permission; if permission is refused, the outgoing adviser should tell the new adviser that, and the new adviser should consider declining the appointment.
- AThe outgoing adviser must send the client's files immediately to HMRC
- BThe outgoing adviser should reply to the request and, with client permission, disclose any relevant information, and if permission is refused tell the new adviser soCorrect
- CThe outgoing adviser may ignore the request because the client has left the firm
- DThe outgoing adviser must disclose all confidential information regardless of the client's wishes
Explanation
The prospective adviser must request professional clearance from the existing adviser, who should respond promptly. Information relevant to the decision to accept appointment may be given only with client permission. If permission is refused, the outgoing adviser must tell the new adviser, who should then be wary of accepting the appointment.
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