PCRT update published to reflect new international standards

PCRT was first published in 1995. It sets out the principles and standards of behaviour that all members and students of the author bodies must adhere to and demonstrates our commitment to high ethical standards in the tax profession.

In 2017 the UK led the way internationally by strengthening PCRT in tax planning by adding five new standards that members must observe. Increased public scrutiny of tax avoidance on the global stage means that international standard setters, notably the International Ethics Standards Board for Accountants (IESBA) of which four of the seven PCRT bodies are members, now also set ethical standards for tax planning.

However, PCRT is wider in scope than the IESBA revisions as it applies to all tax work, while the IESBA revisions, which build on what is already explicit in the PCRT, are limited to tax planning and related services.

This update includes several changes to wording, particularly on the standards for tax planning, to ensure alignment with the IESBA standard.

Other key changes introduced by PCRT include additions to reflect relationships with and advising on the work of third parties; as well as how to deal with disagreements.

Frank Haskew, chair of the PCRT group, said:

“These changes are designed to ensure that PCRT is aligned with the recently published IESBA standard on tax planning and related services and will ensure that PCRT remains the go-to standard for tax in the UK and is consistent regardless of professional affiliation. While not all of the PCRT bodies are required to meet the IESBA standards the PCRT group sees there being strength in all the bodies adhering to the same standard especially given a number of individuals belong to more than one body.

“The structure of PCRT remains unchanged and still consists of the five Fundamental Principles and the five Standards for Tax Planning. Members following PCRT should not find that the revisions present significant extra burdens when providing tax advice.”

Notes:

1. The key additions are to:

- paragraphs 2.7, 2.8 and 2.15 to reflect relationships with and advising on the work of third parties;

- paragraphs 3.8–3.10 to reflect how to deal with disagreements.

2. The seven members of PCRT are: The Association of Accounting Technicians (AAT); The Association of Chartered Certified Accountants (ACCA); The Association of Taxation Technicians (ATT); The Chartered Institute of Taxation (CIOT); The Institute of Chartered Accountants in England and Wales (ICAEW); The Institute of Chartered Accountants of Scotland (ICAS); The Society of Trust and Estate Practitioners (STEP)