What should a tax adviser do if his client refuses to make a full disclosure to the Inland Revenue?
What happens if the Inland Revenue makes an error in favour of the taxpayer?
How should a tax professional respond to a request for information from the tax authorities?
The answer to these and many more questions can be found in the 2004 edition of Professional Conduct in Relation to Taxation (PCRT) issued today (30 April 2004) by the five tax and accounting professional bodies. PCRT provides practical guidance for members on dealings with the tax authorities. It covers areas such as disclosure of irregularities, requests for information from a new adviser, investigation of tax accountants, materiality and Inland Revenue errors.
Adam Broke FCA, CTA and chairman of the joint working party said "We know that members have found this guidance helpful in the past and as the regulatory hoops grow ever higher we hope that this revised edition will prove as useful".
The 2004 edition updates the guidance last issued in 2000 and in particular addresses the changes introduced by the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2003 and developments concerning legal professional privilege.
The Tackling Tax Avoidance – Disclosure Requirements initiative announced in this year’s Budget could have a significant impact on the tax profession. Although too late for inclusion in this edition of PCRT, guidance will be issued by the professional bodies on this topic in due course.