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IRBA: Final Revisions to Code re Tax Planning and Related Services
- 09 January 2025
- Auditing and Assurance
- South African Accounting Academy
Summary:
The Independent Regulatory Board for Auditors (IRBA) has published the Final Pronouncement: Revisions to the IRBA Code of Professional Conduct for Registered Auditors (IRBA Code) Addressing Tax Planning and Related Services, for prescription and use by registered auditors (auditors).
Article:
This final pronouncement was already approved by the IRBA In October 2024, and follows the earlier publication of the latest edition of the IRBA Code of Professional Conduct for Registered Auditors (Revised November 2024).
The revisions have been made to Part 3 of the IRBA Code – more specifically to Section 380 (Tax Planning Services) and consequential amendments to Section 321 (Second Opinions).
To move away from a purely mechanical and legalistic approach, the goal of the amendments to the IRBA Code relating to Tax Planning and Related Services is to provide a principles-based framework and an ethical benchmark applicable to tax planning services and activities.
Key amendments are set out in the IRBA Communiqué at https://www.irba.co.za/upload/report_files/60.-FP---Section-380---Tax-Planning-and-Related-Services.pdf.
These amendments are especially relevant in the context of the rising public scrutiny of tax avoidance schemes, which can damage companies’ credibility and corporate reputation, as well as result in risk litigation and harm to the public interest. Responding to increased public interest concerns, the fundamental goal of these amendments is to ensure an ethical, credible basis for advising on tax planning arrangements, thereby restoring public and institutional trust on a topic that is core to the social contract between corporations and the market that supports them.
These revisions will be effective for tax planning services beginning after 30 June 2025. Early adoption of the provisions is permitted.
A Board Notice will be released in the Government Gazette, advising on the publication of the revisions to the IRBA Code.
The following material is available on the IRBA or the International Ethics Standards Board for Accountants (IESBA) website:
- IESBA Strengthening Ethical Behaviour in Tax Planning Infographic https://www.irba.co.za/upload/IESBA%20Tax%20Planning%20and%20Related%20Services%20Infographic%20-%20Final.pdf
- IESBA Strengthening Ethical Behaviour in Tax Planning Fact Sheet https://www.irba.co.za/upload/IESBA%20Tax%20Planning%20Fact%20Sheet%20Final.pdf
Click here to download the 16-page IRBA Final Pronouncement on Revisions relating to Tax Planning and Related services document:
Relevance to Auditors, Independent Reviewers & Accountants:
- Adherence with our Code of Conduct is crucial in the performance of our duties.
- Auditors, Independent Reviewers and Accountants should be aware of the latest pronouncements and revisions, publications and guidance issued by regulators and standard-setting boards, such as the IRBA and IESBA.
- A contravention of, or failure to comply with, any requirements in the IRBA Code may be regarded as improper conduct. This may lead to an investigation and, if appropriate, the registered auditor might be charged in terms of Section 48 of the APA.