New standards will strengthen the ethical framework that guides professional accountants providing tax planning services; other providers strongly encouraged to follow the standards

Comprehensive framework includes a new requirement and guidance on due consideration of reputational, commercial, and wider economic consequences in their tax advice

Aims to restore public trust on a core topic to the social contract between corporations and the market which supports them

The International Ethics Standards Board for Accountants (“IESBA”) today 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.

Following certification by the Public Interest Oversight Board (PIOB), 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. 

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.

Gabriela Figueiredo Dias, Chair of the IESBA commented: “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.”

Pascal Saint-Amans, former Director OECD Centre for Tax Policy and Administration, said: “I commend IESBA on the launch of the world’s first ethics standards on tax planning, which I’m sure will catalyze a much-needed change in mindset and behaviors.  As public scrutiny increases, tax avoidance becomes less tolerated. Ethics is a central tenet of good tax behavior and advice and IESBA’s work in this area not only generates important discussion on the topic, but also is central to restoring public trust more broadly.”

These new standards are aimed at complementing and further strengthening the relevance of the existing IESBA Code addressing Tax Planning and Related Services. The standards become effective July 1, 2025.

The approval of the new standards was preceded by extensive outreach and public consultation which took place during 2021-2023, including three global roundtables involving over 150 senior-level representatives from stakeholders from very different jurisdictions and backgrounds.

Final Pronouncement - Revisions to the Code Addressing Tax Planning and Related Services

This Basis for Conclusions is prepared by IESBA staff. It provides background to the project and explains the rationale for the IESBA’s proposals in the Revisions to the Code Addressing Tax Planning and Related Services and how the IESBA has addressed the significant matters raised on exposure. The Basis for Conclusions relates to, but does not form part of, the pronouncement approved by the IESBA.

Moving away from a purely mechanical and legalistic approach, the goal of the IESBA's Tax Planning Standards is to provide a principles-based framework and a global ethical benchmark applicable to tax planning services and activities.

This Basis for Conclusions has been prepared by staff of the International Ethics Standards Board for Accountants (IESBA). It explains how the IESBA has addressed the significant matters raised on the IESBA Strategy and Work Plan, 2024-2027 (SWP) consultation paper (CP) and in the IESBA’s deliberations in finalizing the SWP.

Expansion of IESBA activity to address culture and governance at accounting firms

Exploration of increased scope and applicability of the IESBA Code to all individuals who perform the same activities as professional accountants

New workstream to address the evolving role of the CFO in protecting the integrity of financial and non-financial information.

The International Ethics Standards Board for Accountants (IESBA) today announced the publication of its Strategy and Work Plan for 2024-2027 (SWP), titled Towards a More Sustainable Future: Advancing the Centrality of Ethics. The SWP sets out the IESBA's vision and strategic goals and actions, underpinning its ambition to put the International Code of Ethics for Professional Accountants (including International Independence Standards) at the heart of business and organizations.

"Putting ethics at the center of every business judgment and decision is the surest way to earn, restore and strengthen public trust in all that an organization does. The external landscape continues to evolve, presenting new dynamics and challenges, but good ethical behavior acts as a constant amidst the uncertainty. It is about integrity, expected behaviors and mindset, and making the right decision,” said Gabriela Figueiredo Dias, IESBA Chair. “Our new strategic plan reflects the IESBA’s unwavering determination to face the external environment head-on, broaden the reach and scope of our work, and set the highest standards of ethical conduct for professional accountants and others who play a role, large or small, in the financial and non-financial information supply chain. That is how our work, vision and ambition support the proper functioning and sustainability of organizations, financial markets and economies worldwide in the public interest."

Within the SWP, the IESBA has identified two high-priority strategic areas of focus, namely:

• Accounting firm culture and governance, which seeks to identify potential actions the IESBA might take within or outside the Code to respond to the persistent high-profile cases of unethical behavior in accounting firms.
• Exploring the opportunity to extend the impact of the Code beyond the accountancy profession to a wider array of individuals who perform similar work as professional accountants, building on its current project to develop profession-agnostic ethics, including independence, standards for all sustainability assurance practitioners. Among other matters, this will include a new workstream to explore expanding the scope and applicability of the Code beyond professional accountants to all preparers of sustainability information.

Other key highlights of the SWP include:

• New initiatives to explore ethical considerations relating to the evolving role of CFOs and other senior professional accountants in business, and independence considerations relating to business relationships between firms and their audit clients.
• A commitment to conduct a series of post-implementation reviews for significant ethics, including independence, standards the IESBA issued in recent years.
• Ongoing monitoring of the rapidly changing landscape of technological transformations and their impact on the professional activities and services performed by professional accountants and others, with a view to determining the need for any further standard-setting or other actions the IESBA might take in the public interest.
• A commitment to close coordination with the IESBA’s sister Board, the International Auditing and Assurance Standards Board (IAASB), and to fostering collaborative relationships with other standard-setters to ensure standards interoperability.

The SWP represents the culmination of careful assessment of market developments and thoughtful consideration of stakeholder feedback from the IESBA’s extensive outreach and consultation activities over a two-year period.

In developing its SWP, the IESBA engaged closely with IAASB, which today also issued its Strategy and Work Plan 2024-2027, Advancing Public Trust and Strengthening Global Audit and Assurance.

About IESBA

The International Ethics Standards Board for Accountants serves the public interest by setting high-quality ethics standards, including independence requirements, as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information that is fundamental to the proper functioning and sustainability of organizations, financial markets and economies worldwide.

Along with the International Auditing and Assurance Standards Board (“IAASB”), the IESBA is part of the International Foundation for Ethics and Audit (“IFEA”). The Public Interest Oversight Board (“PIOB”) oversees IESBA and IAASB activities and the public interest responsiveness of the standards.