Tax Advisor - United Kingdom

United Kingdom

In the UK, guidelines concerning professional conduct in relation to taxation are published in conjunction with the Chartered Institute of Taxation, the Association of Taxation Technicians, the Institute of Indirect Taxation, the Institute of Chartered Accountants in England and Wales, the Institute of Chartered Accountants of Scotland and the Association of Chartered Certified Accountants. These were prepared for the assistance of members of the various associations both generally in dealing with clients and the tax authorities and specifically in relation to irregularities and errors.

The guidelines, which include practical advice about a range of legal and ethical issues, are summarised as:

• A member’s primary duty is to ensure that his actions comply with the law. He owes a contractual duty to the client to act for him with the requisite degree of skill and care, and the contractual relationship should be governed by a letter of engagement. The member also has duties to the tax authorities, notably of compliance with the law and the honest presentation of his client’s circumstances.
• It is the taxpayer’s responsibility to ensure that returns made to the tax authorities are correct and complete. It is for the member to assist him to decide on the extent and manner of disclosure of facts in relation to his tax affairs.
• Where a member becomes aware that irregularities have occurred in relation to a client’s tax affairs he should advise the client of the consequences, and the manner of disclosure. If necessary, appropriate specialist advice should be taken.
• Where a client refuses to follow the advice of a member in relation to issues involving disclosure, the member should consider whether he should continue to act. If appropriate, specialist advice should be taken.
• If mistakes are made by the tax authorities there may be a need, and in some cases a duty, on the part of the client and sometimes the member, to put matters right.
• Members may have statutory duties of disclosure where they have suspicions of criminal activity.
• When approached for information on a client’s affairs by another adviser the member should ensure that he has his client’s authority before making any disclosure.