Get premium membership and access questions with answers, video lessons as well as revision papers.

What are the factors a practitioner should consider in deciding whether to provide oral or written advice to a tax payer?

      

What are the factors a practitioner should consider in deciding whether to provide oral or written advice to a tax payer?

  

Answers


Wilfred
i) The importance of the transaction and the amounts involved. Where the transaction involves a huge amount it may be appropriate to give your advice in writing for responsibility and future references required.
ii) The technical complexity involved
iii) Highly complex transactions demand continuous reference to the advice provided by the experts hence the need for this advice to be in writing
iv) Existence of authorities and procedures covering the nature of the transaction for which advice is sort
v) The need to seek other professional advice in which case such reference may be documented i.e. the objective
vi) The potential consequences in terms of penalties which are based on the advice rendered.
vii) Whether the transaction is subject to disclosure requirements which may require that any advice relating to the transaction to be documented.
Wilfykil answered the question on February 26, 2019 at 06:29


Next: Explain why investigations of variances are important in a standard costing system.
Previous: Briefly explain the different types of Channels of Distribution/channel structure.

View More CPA Advanced Taxation Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions