• 1 Marks

TAX – Nov 2020 – L1 – SA – Q7 – Ethical Issues in Tax Practice

Identify which circumstance does not allow a tax consultant to disclose taxpayer information.

Which of the following is NOT a circumstance when a tax consultant may disclose information on a taxpayer?
A. Disclosure is permitted by law
B. Disclosure is authorised by the client, that is the taxpayer
C. Disclosure is required by law, for example, the production of documents or other provisions of evidence in the course of legal proceedings
D. There is a professional duty or right to disclose, when not prohibited by law
E. Disclosure is at the discretion of the tax practitioner

E. Disclosure is at the discretion of the tax practitioner

Explanation:
Tax consultants must follow strict guidelines regarding confidentiality. Disclosures are permitted only when authorized by law, by the client, or when there is a professional duty or legal requirement. Disclosure cannot be made solely at the discretion of the tax practitioner, as this would breach ethical obligations and confidentiality agreements.

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