Module 2 Research, Communication & Professional Obligations

1. Chartered Tax Consultant Module 2 Research, Communication & Professional Obligations Patricia Quigley 18th/19th January 2013

2. Learning Objectives Research Communication Professional Obligations Money Laundering Methods for tax planning /compliance Coherence/Relevance Revenue; Client; Other professionals Understand/ Implement Ethical responsibilities Applying MLO as a Chartered Accountant

3. Introduction Development of Professional Skills Focus on application of these skills to tax practice Tax Research is an integral part of all tax work Research outcome must be communicated

4. Introduction CAI Professional Standards – including Risk Management Money Laundering – CAI Guidance Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 CA obliged to incorporate ML and RM into daily professional activities

5. Research Skills

6. Research Skills Do you put off starting your research? Is the deadline looming and your fear growing? Control your fear and improve output Learn and practice a methodical approach to research Know where to access tax information

7. Tax Research and RM What makes it easier for you if you are the reviewer? Report and file structure? Cross references to research material Always imagine yourself as the reviewer

8. Research Same approach for all tasks No task too trivial Keep asking questions Ask more questions

9. Research Responsibility Person Delegator? Person assisting? You? Same answer for keeping up to date? Person Responsible NO NO YES YES

10. Risk Management Enron collapse and scandal US SEC Investigation Sarbanes-Oxley Act 2002 (SOX) Public Company Accounting Oversight Board (PCOAB) Other countries followed US

11. Risk Management Understand the RM procedures of your organization RM developments – CAI, legislation and regulations Incorporate RM into your daily work as a CTC Keep up to date with developments

12. Key Reports on RM OECD GAP003 www.oecd.org/dataoecd/36/0/1908440.pdf OECD Managing and Improving Tax Compliance www.oecd.org/dataoecd/44/19/33818656.pdf EC Taxation and Customs Union Risk Management Guide for Tax Administrations http://ec.europa.eu/taxation_customs/

13. RM Procedures Know Your Client Procedures (KYC) New client identification Engagement Letters Anti Money Laundering procedures (AML) File maintenance Controls over tax compliance work Peer Reviews

14. RM – Staring a New Task Consider RM for each assignment The file is yours for the duration of task You are responsible for RM What are your RM checks at commencement?

15. RM “Personal” Checks File Engagement Letter Understand? Assistance? Training? Deadline? Tax compliance Set up and sections? Current, signed and cover the work? Anything not clear? Is help needed? Training needs? Realistic? Is a database needed?

16. Importance of Risk Management

17. Negligence? Tax advice may be correct More likely that RM left until last Time pressures “Too busy” is not sufficient Methodical and daily RM needed

18. Risk Management Summary Who takes responsibility for RM? How often? Should you change your habits? Expect high standards when reviewing Be methodical RM is for all tasks – however “simple”

19. Research – Getting Started Questions and Listening Understand the purpose of the research What “product” is expected from you? Prepare well at the beginning Methodical structure Incorporate RM

20. Listen and Question Point 1 Point 2 Point 3 Point 4 Point 5 Point 6

21. Process – Why? No research process = ? Emphasis on end product only Conclusions reached too quickly RM not put in place

22. Research Steps Deadlines for steps and delivery Notebook for recording ideas List of sources Use previous knowledge Brainstorming – use colleagues

23. Research Process Overview Gathering information Researching tax issues – sources Useful websites Drafting and completing the written advice

24. Jigsaw Analogy Casting a wide net Sifting methodically Select relevant parts Disregard the rest

25. Tax Research What is the primary source for your research? TAX LEGISLATION

26. Tax Legislation Commentaries may be valid but not for all situations Daily habit of using tax legislation Start with issues you know Read legislation as “new” each time Use latest version of legislation Read entire section(s)

27. Tax Legislation Example Is orthodontic work tax deductible? Section 469 TCA 1997 – YES What else did you learn? Relief at standard rate from 2009 Nursing home at higher rate References to Tax Briefing 50

28. Tax Legislation Direct Tax Acts Provisional Collection of Taxes Act 1927 Interpretation Act 1937 Waiver of Certain Tax, Interest and Penalties Act, 1993 Interpretation Act 2005 Taxes Consolidation Act 1997 (TCA 1997)

29. Tax Legislation Stamp Duty Legislation SDCA 1999 Capital Acquisition Tax Legislation CATCA 2003 Law of Value Added Tax VATCA 2010

30. Secondary Research Sources

31. Secondary Research Sources

32. Research - Websites Irish www.irishstatutebook.ie/home.html www.revenue.ie www.gov.ie/departments www.gov.ie/oranisations www.egt.ie/misc/nuachtain.html

33. Research - Websites EU http://ec.europa.eu/taxation_customs/index_en.html http://ec.europa.eu/community_law/introduction/treaty_en.html International www.oecd.org

34. Research - Websites UK www.hmrc.gov.uk www.tax.org.uk www.direct.gov.uk www.opsi.gov.uk

35. Research - Websites US www.irs.ustreas.gov www.taxsites.com www.sawguru.com

36. Drafting the Report Bits of the jigsaw are fitting together Whole picture not yet appearing Document and track the information Are there gaps? Review again Note your questions – ask now or later? Research must support your conclusions and recommendations

37. Writing the Report Jigsaw – corner pieces now in place and sides joined up Clear where remaining pieces will fit Stand back – “ask a friend”? Join together legislation, case law and other sources Analysis must withstand scrutiny eg Revenue

38. Final Checks Layout and content Conclusions – are they clear? Does summary reflect main points? Proof reading by a colleague Sources and references included Scrutiny check carried out? Finalise your professional communication

39. Communication Skills 1 Conversation Listening

40. Communication Skills Form? Conversation = ? Conversation Body Language Visual Written Combination of above

41. Communication Skills Meaning? Communication =? Sharing information is? Examples ? “common” or shared Sharing Information At the heart of what a tax professional does Preparing tax comps Company restructure advice Tax projections for business plan

42. Communication Skills “Effective communication is assisted by building a rapport with clients, colleagues, shareholders and other relevant stakeholders and creating a shared understanding” Paragraph 2.3.1 Module 2

43. Communication Skills Focus on three skills Conversation Listening Writing

44. Diagram / Chart Building rapport Shared Understanding Effective communication Communication Conversation Listening Writing

45. Conversation 2/3rds of conversation spent on social topics Helps us to relax Result is more effective communication How to use this in your work?

46. Conversation in Your Work Look for a common interest Ask questions about a shared situation Avoid “rattling” on about yourself Put the other person at ease Lead into the tax issue at hand

47. Work at Conversation Technology has reduced workplace conversation Conscious effort needed Talk with colleagues as well as clients Sharing of valuable work related information

48. Plan for Conversation Timing Time limit? Informal agenda Common ground Summarise Body Language Notes Check with other Is there a time limit? Informal Find some Throughout and at end Be aware/interpret Memory aid/file note

49. Arguments Is an argument developing? No hard and fast rules Rapport lost and must be rebuilt Have privately held beliefs taken over?

50. Arguments - tips Professional responsibility – act in a professional manner Stick to the facts Avoid personal beliefs Be honest Ask questions Use listening skills and remember the long term client relationship