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Compliance with the fundamental principles of ethics may be potentially threatened by a broad range of circumstances. Self-interest threats, for instance, may occur where a...

      

Compliance with the fundamental principles of ethics may be potentially threatened by a broad range of circumstances. Self-interest threats, for instance, may occur where a financial or other interest could inappropriately influence a tax practitioner's judgement or behaviour.

Required:
With reference to the above statement, summarise four circumstances that could create self-interest threats for tax practitioner engaged with a client.

  

Answers


Wilfred
The following circumstances can create self-interest threat
i. Financial interests in a client or jointly holding financial interest with a clients
ii. Undue dependence on rental fees from a client
iii. Having close business relationship with a client e.g. being a client’s supplier
iv. Concerns about the possibility of loosing clients
v. Charging fees which is contingent to the outcome e.g. earning fees in form of commissions
vi. Borrowings to or from a client
vii. Family relationships
Wilfykil answered the question on February 26, 2019 at 06:24


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