The International Ethics Standards Board (IESBA) has published an exposure draft for consultation, setting out proposed revisions to the IESBA ethical code in relation to tax planning and related services.
The existing ethical code forms the basis of the ethical codes followed by members of the International Federation of Accountants. However, the existing code does not include specific details in respect of tax planning and related services. Professional bodies working in tax therefore follow the Professional Conduct in Relation to Taxation (PCRT). This sets out ethical principles in relation to tax matters, and goes beyond the existing IESBA code.
The new tax specific additions are, in whole or part, already included in the PCRT but there is concern that the IESBA have a more prescriptive approach than the PCRT, which is principles based. Reconciling the two different approaches may be difficult..
The consultation closes on 18 May 2023.