Providing Tax Advise Case
Response to Providing Tax Advise Case
“Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands." (Judge Learned Hand 1872-1961)
With regards to the principles, there shouldn’t be any conflict of interest between upholding the public interest and providing tax advice to reduce people’s tax liability. No tax payer should have to pay more than what the law demands. If a particular strategy will yield a lower tax liability, the tax payer should consider it as long as it does not conflict with what the laws in effect states. There is nothing inherently wrong with the function that tax professionals occupy in our society. Conflict of interest can arise; however, if the tax professionals lack high ethical standards then it can lead to unethical practices. The ethical standards that each tax professional has vary, which can affect their personal judgment. The focus should be on the individual not the relationship.
Professional accountants can maintain the support of the public while giving tax advice by understanding the difference between the expectations of the general public and the clients. The general public expects the professional accountants to adhere to the highest ethical standards while the client expects loyalty and reasonable level of service for their fees. It is, however, the job of the professional accountant to define these expectations and help close the expectation gap that exists in the accounting profession. In other words, explain to the client the extent and level of service that he or she should expect and define the inherent responsibility to the general public.
Questioning if a specific job function violates the loyalty to the general public just because it is tailored to serve a specific segment of society is an empty argument. The same question
“Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands." (Judge Learned Hand 1872-1961)
With regards to the principles, there shouldn’t be any conflict of interest between upholding the public interest and providing tax advice to reduce people’s tax liability. No tax payer should have to pay more than what the law demands. If a particular strategy will yield a lower tax liability, the tax payer should consider it as long as it does not conflict with what the laws in effect states. There is nothing inherently wrong with the function that tax professionals occupy in our society. Conflict of interest can arise; however, if the tax professionals lack high ethical standards then it can lead to unethical practices. The ethical standards that each tax professional has vary, which can affect their personal judgment. The focus should be on the individual not the relationship.
Professional accountants can maintain the support of the public while giving tax advice by understanding the difference between the expectations of the general public and the clients. The general public expects the professional accountants to adhere to the highest ethical standards while the client expects loyalty and reasonable level of service for their fees. It is, however, the job of the professional accountant to define these expectations and help close the expectation gap that exists in the accounting profession. In other words, explain to the client the extent and level of service that he or she should expect and define the inherent responsibility to the general public.
Questioning if a specific job function violates the loyalty to the general public just because it is tailored to serve a specific segment of society is an empty argument. The same question