International Ethics Standards Board for Accountants (IESBA) published "Proposed Revisions to the Code Addressing Tax Planning and Related Services" which contributes to preserving the sustainability of the Code and enhancing its effectiveness as a tool that keeps the confidence of the international community in the accounting profession. This exposure draft came as a response from the Board to the need that arose from the international concern about the possibility of wealthy individuals and companies exploiting tax laws around the world in a way that would harm the public interest and does not achieve the purposes of tax laws.
Saudi Organization for Chartered and Professional Accountants (SOCPA), represented by the Professional Code of Ethics Committee, expressed its support, in principle, for the proposed revisions by International Ethics Standards Board for Accountants (IESBA) to address the ethical implications for professional behavior related to tax planning and related services. SOCPA shared a couple of comments on the proposed changes that are important to achieve the proposed revisions' purposes. The comments include the following:
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Expanding the volume of the Code by developing additional two sections which may have unintended effects.
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Expanding professional accountants responsibilities to an extent that may impose certain threats to the profession's role and reputation.
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Diverging from the Code's style where the discussion of the ethical guidance is consistently structured and linked to the basic principles and conceptual framework, which may impact the coherent approach in the Code.
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Developing new concepts (e.g. "tax-efficiency", "credible basis") where professional accountants' subjective analysis is demanded may result in unneeded complexity pertinent to difficulties in understanding and applying such concepts.
SOCPA also offered some changes in this regard that could help develop these proposed revisions as they could limit the negative effects associated with them.
Detailed comments on the subject can be viewed by clicking here.