Philippine Institute of Certified Public Accountants Reviewing Guidelines on Tax Planning and Related Services

The Philippine Institute of Certified Public Accountants (PICPA) has recently issued a call for public comments on the Guidelines of tax planning and related services revisions to the International Code of Ethics for Professional Accountants. These Guidelines, drafted by the International Ethics Standards Board for Accountants (IESBA) of the International Federation of Accountants, aim to address the ethical implications of aggressive tax planning by professional accountants.

With nearly 200,000 Filipino CPAs either members or required to be members of the Accredited Integrated Professional Organization of PICPA, the implementation of these Guidelines is crucial in the field of taxation. The PICPA will review the Guidelines for adoption in the Code of Ethics for Professional Accountants in the Philippines, with a target date set by IESBA and IFAC for June 30, 2025.

Former Bureau of Internal Revenue Commissioner Joel L. Tan-Torres, who has been in tax practice for over four decades, fully supports this development. He highlights the risks and adverse implications of aggressive tax planning, citing global cases of tax evasion and money laundering. In the Philippines, recent efforts by the BIR against tax irregularities underscore the importance of ethical tax planning practices.

The IESBA’s Tax Planning Standards aim to provide a principles-based framework for tax planning services, emphasizing the consideration of public interest and potential consequences for clients or organizations. The Guidelines outline threats that may arise in tax planning activities and stress the importance of ethical decision-making in recommending tax planning arrangements.

As the BOA and PICPA work to integrate these Guidelines into the Code of Ethics for Professional Accountants, the focus remains on maintaining the spirit and intent of ethical tax planning practices. With the support of professionals like Tan-Torres, the accountancy sector in the Philippines is poised to uphold ethical standards in tax planning and related services.