New Global Standards on Ethical Considerations in Tax Planning Released by IESBA

The International Ethics Standards Board for Accountants (IESBA) has recently released a comprehensive suite of global standards focusing on ethical considerations in tax planning and related services. These standards are set to provide a global ethical benchmark applicable to tax planning and will be incorporated into the IESBA Code of Ethics.

One of the key aspects of these standards is the new requirement and guidance on due consideration of reputational, commercial, and wider economic consequences in professional accountants’ tax advice. This shift towards a principles-based framework aims to move away from a purely mechanical and legalistic approach, emphasizing the importance of restoring public and institutional trust in tax planning.

IESBA Chair Gabriela Figueiredo Dias highlighted the importance of these standards in guiding professional accountants and other tax professionals in making ethical decisions that are central to trust in the entire system. The standards are especially relevant in light of the increasing public scrutiny of tax-avoidance schemes that can harm companies’ credibility and reputation.

Extensive outreach and public consultation, including global roundtables involving over 150 senior-level representatives, preceded the approval of these standards. The standards are set to become effective on 1 July 2025, providing a clear framework of expected behaviors and ethics provisions for all professional accountants.

Overall, these new global standards on ethical considerations in tax planning are a significant step towards promoting transparency, accountability, and trust in the tax advisory profession. Professional accountants and tax advisers are encouraged to adopt or use these standards to uphold their duty to the public interest and navigate the complex ethical decisions in this crucial area.