The updated Professional Conduct in Relation to Taxation (PCRT) came into force on 1 March. Published back in November by ICAEW and other leading UK accountancy and tax bodies, it sets out clear professional standards in relation to the facilitation and promotion of tax avoidance.
The PCRT has been in existence for over 20 years and is regularly updated. This latest update came in response to the Government’s call back in 2015 for professional bodies to take a greater lead in tackling tax avoidance. It includes a set of standards that support and build on our fundamental ethical principles, and helps guide members who provide tax advice without adding extra complexity or uncertainty.
The new update to the PCRT reinforces what ICAEW has been saying for many years: that there is no place in our profession for those involved in the creation or promotion of artificial or contrived tax avoidance schemes. I urge all members, whether you work in practice or in business, to familiarise yourself with the new standards.
The PCRT should be a useful tool for business members not only when filling out their own tax return, but also when asked to comment on a tax arrangement in a social environment or professional setting. By being able to ask whether the suggested arrangements comply with the terms of the PCRT, you will able to make sure you stay on the right side of the law. Promoting awareness of the PCRT among business professionals will also go a long way in building trust in business.
Read the updated version of the PCRT here.