In The United Kingdom (Uk), The Professional Conduct In

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In the United Kingdom (UK), the Professional Conduct in Relation to Tax (PCRT) is adopted to govern the conduct of tax professionals. The PCRT is a guide jointly produced by seven-leading tax and accountancy bodies which sets out the fundamental principles and standards of behaviour that tax consultants are expected to follow.

These regulations include: i)fundamental principles, ii)expected standards and iii)general and specific guidance. The fundamental principles form the foundation of PCRT’s standards and guidance. It governs the ethicality of tax professionals and encompasses Integrity, Objectivity, Professional Competence & Due Care, Confidentiality and Professional Behaviour. The PCRT also acts as a guidance for tax consultants in
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In this context, consultants are to inform their client if the tax law is materially uncertain and give appropriate advice in relation to the risks and circumstances of each case. They are also encouraged to seek professional help whenever uncertain. This hence deters tax consultants and clients alike from exploiting loopholes in tax laws given a better understanding of the potential risks associated. Thirdly, disclosure and transparency requires disclosure to be made as required by law, and tax consultants must recommend clients for full and transparent disclosure whenever possible. This encourages taxpayers to be compliant through enhanced transparency for both the tax payer and the government.

In addition, tax planning arrangement states that tax consultants must never create, encourage or promote any form of tax planning arrangements that either; i)have the intention to achieve results which conflicts with that of the Parliament and/ or ii)are highly artificial or unrealistic and seek to exploit loopholes in the legislation1. This principle discourages the creation and usage of aggressive tax planning techniques by laying out the government’s views and expectations on appropriate tax planning schemes. Lastly, professional judgement and appropriate documentation requires tax consultants to justify their professional judgements by supporting it with convincing paperwork. Tax consultants are also expected to
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