IESBA launches first global ethics standards on tax planning
In April 2024, the IESBA announced the launch of the first comprehensive suite of global standards on ethical considerations in tax planning and related services, incorporated in the IESBA Code of Ethics. The standards establish a clear framework of expected behaviors and ethics provisions for use by all professional accountants, and respond to public interest concerns about tax avoidance and the role played by consultants in light of revelations in recent years such as the Paradise and Pandora Papers.
About the New Tax Planning and Related Services Standards
Moving away from a purely mechanical and legalistic approach, the goal of the standards is to provide a principles-based framework and a global ethical benchmark applicable to tax planning services and activities. This will establish a consistent point of reference for all professional accountants, as well as other tax professionals who are strongly encouraged to use the standards, when dealing with tax planning, to ensure due consideration of public interest as well as potential reputational, commercial, and wider economic consequences for their clients or employing organizations.
These standards are especially relevant in the context of rising public scrutiny of tax avoidance schemes which can harm companies’ credibility and corporate reputation, as well as risking litigation and harming the public interest. Responding to increased public interest concerns, the fundamental goal of these standards is to ensure an ethical, credible basis for advising on tax planning arrangements, thereby restoring public and institutional trust on a topic that is core to the social contract between corporations and the market which supports them.
"Professional accountants have an important duty to their clients but must not lose sight of their fundamental duty to the public interest. As scandals in recent years have shown, though some behaviors may be legal under the letter of the law in certain jurisdictions, the ‘grey area’ of tax is not always the ethical way forward. These standards provide a robust framework to help professional accountants, as well as all other tax advisers whom we strongly encourage to adopt or use the standards, navigate the ethical decisions in this complex area that are central to trust in the entire system.”
Gabriela Figueiredo Dias, IESBA Chair
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Webinars and Partner Events
IESBA to Hold Interactive Webinars on the Recently Released Global Ethics Standards on Tax Planning
The 1.5-hour webinar will feature a high-level overview of the standards and provide an opportunity for stakeholders to participate in a questions-and-answers session with the presenters.
The webinars will be held in English and available on YouTube following the session.
Global Webinar #1
Timing: May 13, 2024 at 10:30 PM, EDT
Presenters:
- Laurie Endsley, IESBA Vice Chair
- Andy Mintzer, IESBA Member
- Channa Wijesinghe, IESBA Member
- Carla Vijian, IESBA Principal
Global Webinar #2
Timing: May 15, 2024 at 12:00 PM, EDT
Presenters:
- Jens Poll, Former IESBA Member and Chair of the Tax Planning and Related Services Task Force
- Laurie Endsley, IESBA Vice Chair
- Sanjiv Chaudhary, Former IESBA Member
- Carla Vijian, IESBA Principal