APES 220:

Taxation Services Fact Sheet

Objective
APES 220 Taxation Services (the Standard) sets out mandatory requirements and guidance for members who provide
taxation services.

Scope and application
APES 220 took effect on 1 J uly 2008 and was revised in March 2011. The revised standard which is effective from 1 May
2011, requires members in Australia to adhere to its mandatory requirements when they provide a taxation service. For
members outside of Australia, the scope of the Standard must be followed as long as local laws and/or regulations are not
contravened.
Fundamental responsibili ties of members
APES 220 requires members to observe and comply with their public interest obligations when they provide taxation
services. The Standard also reminds members of their professional obligations established in accordance with APES 110
Code of Ethics for Professional Accountants (the Code) in respect of:

Section 120 Objectivity
Section 130 - Professional Competence and Due Care
Section 140 Confidentiality.

Consistent with the fundamental principles of integrity and professional behaviour, APES 220 mandates that members
providing taxation services must ensure that their personal tax obligations and those of the members associated entities
are properly discharged.

Preparation and lodgement of returns to revenue authorities
APES 220 stipulates that a member must prepare and/or lodge returns and other relevant documentation with a revenue
authority in accordance with the information provided by a client or employer, their instructions and applicable taxation
law.

Tax schemes and arrangements
APES 220 requires a member, where appropriate and having regard to the members scope of work, to provide a client or
employer with sufficient information to enable them to be fully informed of the details of any proposed tax scheme or
arrangement and its current and future ramifications. Members must not knowingly or recklessly be associated with
documents or accounting entries that misrepresent transactions. Members must also not promote tax schemes and
arrangements in circumstances where it is not reasonably arguable that the applicable tax benefit is available under
Taxation Law.

Estimates
The use of estimates is prohibited by APES 220 unless their use is reasonable and it is generally accepted or where exact
data cannot be obtained. Where estimates are not reasonable, the member must advise the client or employer of the
risks and consequences of using estimates.














APES 220:
Taxation Services Fact Sheet






False or misleading information
In accordance with APES 220, members must not provide a taxation service to a client or employer if it is based on false
or materially misleading information. Further, a member must not knowingly or recklessly make a statement or cause
others to make a statement that is false or misleading by its content or omission in a material manner.

Professional engagement matters
Terms of engagement must be documented and communicated by members in public practice according to APES 305
Terms of Engagement. Members in public practice must also comply with Section 210 Professional Appointments of the
Code.

Refer to the Standard for information concerning:

definitions
objectivity
confidentiality
professional competence and due care
preparation and lodgement of returns to revenue authorities
tax schemes and arrangements
estimates
false and misleading information
professional engagement matters
client monies
professional fees
documentation.


Disclaimer
The above material is only general in nature and not intended to be specific to the readers circumstances. The material does not relieve you of your
obligation, as a member of CPA Australia, to ensure that you comply with professional standards. To keep up-to-date members should visit the APESB
website at apesb.org.au.

Copyright CPA Australia Ltd (CPA Australia) (ABN 64 008 392 452), 2012. All rights reserved. All trade marks and trade names are proprietary to
CPA Australia and must not be downloaded, reproduced or otherwise used without the express consent of CPA Australia.
You may access and display these materials on your computer, monitor or other video display device and make one printed copy of any whole page or
pages for your personal use only. Other than for the purposes of and subject to the conditions prescribed under the Copyright Act 1968 (Cth) (or any
other applicable legislation throughout the world), or as otherwise provided for herein, you may not use these materials in any manner without the prior
written permission of the copyright owner.
CPA Australia and the author have used reasonable care and skill in compiling the content of these materials. However, CPA Australia makes no
warranty as to the accuracy or completeness of any information contained therein nor does CPA Australia accept responsibility for any acts or omissions
in reliance upon these materials. These materials are intended to be a guide only and no part is intended to be advice, whether legal or professional. All
persons are advised to seek professional advice to keep abreast of any legal or other reforms and developments.
To the extent permitted by applicable law, CPA Australia, its employees, agents and consultants exclude all liability for any loss or damage claims and
expenses including but not limited to legal costs, indirect special or consequential loss or damage (including but not limited to, negligence) arising out of
the information in the materials. Where any law prohibits the exclusion of such liability, CPA Australia limits its liability to the resupply of the information.
Issued November 2012