ACCA Advanced Taxation (ATX) Practice Exam

Which ethical consideration must be taken when becoming tax advisers to a new client moving to a different country?

1. Ensuring fees are competitive

2. Gaining permission to access previous advice

3. Advertising services to potential clients

4. Accepting all clients without exceptions

The correct answer is: Gaining permission to access previous advice

When becoming tax advisers to a new client moving to a different country, an important ethical consideration is gaining permission to access previous advice. This is crucial because prior tax advice received by the client can significantly inform your own tax planning strategies and recommendations. Understanding the client’s past tax positions, risks, and compliance history is vital to providing sound advice that aligns with their overall tax strategy in the new jurisdiction. Additionally, doing so respects the client's relationship with their previous advisers and ensures continuity and accuracy in their tax affairs. It allows you to identify any areas of concern that may need addressing or could impact the client's tax position in their new country. By obtaining this permission, tax advisers also adhere to confidentiality standards and the principle of integrity in the profession. This consideration is pivotal in establishing a trusting relationship with the client and demonstrating professionalism in handling their tax matters across different tax jurisdictions.