The International Ethics Standards Board for Accountants said Tuesday its first global Ethics Standards on Tax Planning, which IESBA launched in April 2024, went effective today.
The standards aim to provide a strong ethical framework to guide accountants when providing tax planning services or performing tax planning activities, so they can make ethical judgments and decisions.
Instead of relying only on a technical or rules-based approach, accountants apply a principles-driven framework that offers consistent guidance for tax planning services or activities. The framework can also be followed by other tax practitioners who want to adhere to a high ethical benchmark.
The goal is to help ensure that tax planning decisions take into account the public interest, including a credible basis in laws and regulations and that they take into consideration the potential reputational, commercial, and broader economic consequences to which the tax planning arrangement could give rise.
The standards can help accounting firms and tax practitioners by offering a sound ethical foundation for advising on tax planning while contributing to building public and institutional confidence in tax.
“Today marks an important milestone for IESBA and the global accounting profession,” said IESBA chair Gabriela Figueiredo Dias in a statement. “The Global Ethics Standards on Tax Planning provide a vital tool to help firms and professionals navigate the complex and often grey areas of tax planning, ensuring the public interest remains at the forefront. I commend all those who are leading the way by adopting or working towards the adoption of these standards”.
The IESBA said several jurisdictions have already adopted the standards: Australia, Hong Kong SAR, Saudi Arabia, Singapore and South Africa. Implementation support resources, including staff questions and answers, can be found on the IESBA website.
