The need for an ethical and

professional approach
Under self assessment, all taxpayers (whether
individuals or companies) are responsible for
disclosing their taxable income and gains and
the deductions and reliefs they are claiming
against them.
Many taxpayers arrange for their accountants to
prepare and submit their tax returns.
The taxpayer is still the person responsible for
submitting the return and for paying whatever
tax becomes due:
the accountant is only acting as the taxpayer's agent.

 The practising accountant often acts for

taxpayers in their dealings with MRA and
situations can arise where the accountant has
concerns as to whether the taxpayer is being
honest in providing information to the
accountant for onward transmission.
How the accountant deals with such situations
is a matter of professional judgement, but in
deciding what to do, the accountant will be
expected to uphold the standards of the
Association of Chartered Certified Accountants.
He must act honestly and objectively, with
due care and diligence, and showing the
highest standards of integrity.

 If an accountant learns of a material error or

omission in a clients tax return or of a
failure to file a required tax return, the
accountant has a responsibility to advise the
client of the error, omission or failure and
recommend that disclosure be made to MRA.
If the client, after having had a
reasonable time to reflect, does not
correct the error, omission or failure or
authorise the accountant to do so on the
clients behalf, the accountant should inform
the client in writing that it is not possible for
the accountant to act for that client.

 The accountant should also notify MRA that

the accountant no longer acts for the client
but should not provide details of the reason
for ceasing to act.
after having had notice of the error,
omission or failure and a reasonable time
to reflect, an accountant must also report
the clients refusal and the facts
surrounding it to the Money Laundering
Reporting Officer within the accountancy
firm or to the appropriate authority
(Serious Organised Crime Agency (SOCA))
if the accountant is a sole practitioner

 Accountants who suspect or are aware

of tax evasion activities by a client may
themselves commit an offence if they
do not report their suspicions.
The accountant must not disclose to
the client, or any one else, that such a
report has been made if the accountant
knows or suspects that to do so would
be likely to prejudice any investigation
which might be conducted following the
report as this might constitute the
criminal offence of tipping-off.

IN SUMMARY
If a client makes a material error or
omission in a tax return, or fails to
file a tax return, and does not correct
the error, omission or failure when
advised, the accountant should
cease to act for the client, inform
MRA of this cessation and make a
money laundering report.