Objective APES 220 Taxation Services (the Standard) sets out mandatory requirements and guidance for members who provide taxation services.
Scope and application APES 220 took effect on 1 J uly 2008 and was revised in March 2011. The revised standard which is effective from 1 May 2011, requires members in Australia to adhere to its mandatory requirements when they provide a taxation service. For members outside of Australia, the scope of the Standard must be followed as long as local laws and/or regulations are not contravened. Fundamental responsibili ties of members APES 220 requires members to observe and comply with their public interest obligations when they provide taxation services. The Standard also reminds members of their professional obligations established in accordance with APES 110 Code of Ethics for Professional Accountants (the Code) in respect of:
Section 120 Objectivity Section 130 - Professional Competence and Due Care Section 140 Confidentiality.
Consistent with the fundamental principles of integrity and professional behaviour, APES 220 mandates that members providing taxation services must ensure that their personal tax obligations and those of the members associated entities are properly discharged.
Preparation and lodgement of returns to revenue authorities APES 220 stipulates that a member must prepare and/or lodge returns and other relevant documentation with a revenue authority in accordance with the information provided by a client or employer, their instructions and applicable taxation law.
Tax schemes and arrangements APES 220 requires a member, where appropriate and having regard to the members scope of work, to provide a client or employer with sufficient information to enable them to be fully informed of the details of any proposed tax scheme or arrangement and its current and future ramifications. Members must not knowingly or recklessly be associated with documents or accounting entries that misrepresent transactions. Members must also not promote tax schemes and arrangements in circumstances where it is not reasonably arguable that the applicable tax benefit is available under Taxation Law.
Estimates The use of estimates is prohibited by APES 220 unless their use is reasonable and it is generally accepted or where exact data cannot be obtained. Where estimates are not reasonable, the member must advise the client or employer of the risks and consequences of using estimates.
APES 220: Taxation Services Fact Sheet
False or misleading information In accordance with APES 220, members must not provide a taxation service to a client or employer if it is based on false or materially misleading information. Further, a member must not knowingly or recklessly make a statement or cause others to make a statement that is false or misleading by its content or omission in a material manner.
Professional engagement matters Terms of engagement must be documented and communicated by members in public practice according to APES 305 Terms of Engagement. Members in public practice must also comply with Section 210 Professional Appointments of the Code.
Refer to the Standard for information concerning:
definitions objectivity confidentiality professional competence and due care preparation and lodgement of returns to revenue authorities tax schemes and arrangements estimates false and misleading information professional engagement matters client monies professional fees documentation.
Disclaimer The above material is only general in nature and not intended to be specific to the readers circumstances. The material does not relieve you of your obligation, as a member of CPA Australia, to ensure that you comply with professional standards. To keep up-to-date members should visit the APESB website at apesb.org.au.
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