ISCA Invites Comments on EP 100 Exposure Draft to Adopt IESBA's Revisions to the Code Addressing Tax Planning and Related Services

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ISCA issues the Exposure Draft – Proposed Changes to EP 100 Code of Professional Conduct and Ethics (EP 100 ED) for public consultation to adopt the IESBA’s final pronouncement, Revisions to the Code Addressing Tax Planning and Related Services (Tax Planning FP) with a proposed effective date of 1 July 2025.

The Tax Planning FP introduces two new sections to EP 100 to address tax planning (TP) and related services:

Section 280 to guide judgements and decisions when professional accountants in business (PAIBs) perform TP activities for employing organisations.

Section 380 to guide judgements and decisions when professional accountants in public practice (PAPPs) provide TP services to clients.

Sections 280 and 380 establish a comprehensive ethical framework to guide PAIBs and PAPPs when performing TP activities or providing TP services. The EP 100 ED proposes to adopt the Tax Planning FP in entirety. No changes to SG provisions are necessary for purposes of local adaptation as EP 100.

Among other matters, the proposed ethical framework:

Establishes the principle that PAIBs and PAPPs recommend or otherwise advise on a TP arrangement only if they have determined that there is a credible basis in laws and regulations for it.

Requires consideration of the reputational, commercial and wider economic consequences that could arise from the way stakeholders might view the TP arrangement before determining whether to proceed with the recommendation or advice.