Ethics

Question 1

What are the threats and principles that could be threatened in an Ethics question ?

Answer 1

Question 2

What are the main points in a conflict on interest question ?

Answer 2

1. Notify all relevant parties.
2. Obtain consent from all parties.
3. Separate teams.
4. Secure data filing.
5. Confidentiality agreements signed.
6. Must not work on clients during and immediately after secondment to HMRC.

Question 3

What are the main points in a Client procedures question ?

Answer 3

1. Relevant skills.
2. CDD based on risk.
3. Engagement letter, sets out scope of client/advisor responsibilities:
   ~Client ~ Tax, Advisor ~ calculates.
   ~Disclose errors to HMRC.

Question 4

What are the main points in a Errors question ?

Answer 4

1. E.L to see if authority to disclose?
2. Ask permission if not in E.L.
3. Advise on penalties, interest & criminal proceedings.
4. Permission refused: cease to act, notify HMRC.
5. Money Laundering.

Question 5

What are the main points in a Money Laundering question ?

Answer 5

1. TE criminal offence, proceeds are crime.
2. Advisor must report to MLRO if reasonable grounds.
3. MLRO decides whether report made to NCA.
4. Disclose client information without client consent.

Question 6

What are the defenses for failing to report a ML case ?

Answer 6

No suspiscion.
Threat to safety.
Offences occured outside UK.
Privileged reporting exemption when giving legal advice.

Question 7

What are the procedures in regards to making sure a practice is ML equipped ?

Answer 7

Register with ICAEW
Appoint MLRO
Train Staff
Internal procedures
CDD

Question 8

What are the main points in a PII question ?

Answer 8

1. GFI < £600K: PII is 2.5x income (£100K min).
2. GFL > £600K: PII is £1.5m min.
3. Maintain for min 2 years after retirement.

Question 9

What are the main points in a Data protection question ?

Answer 9

GDPR for personal data.
Data security: Change PW every 3 months, suspicious activity reported.

Question 10

What are the main points in a PCRT question ?

Answer 10

1. Client specific - tailored to specific facts, not mass marketed.
2. Lawful - highlight areas where law is uncertain.
3. D&T - HMRC must have relevant facts.
4. TP and arrangements, must not be:
   ~ contrary to parliament intended.
   ~ highly artificial or contrived.

Question 11

Give me a summary of the differences between Tax planning, avoidance and evasion.

Answer 11