Tax advisor

A tax advisor or tax consultant is a person with advanced training and knowledge of tax law. The services of a tax advisor are usually retained in order to minimize taxation while remaining compliant with the law in complicated financial situations. Tax Advisors are also retained to represent clients before tax authorities and tax courts to resolve tax issues.

Field of activity

Tax consultants have the task of advising and representing their clients in all tax matters, to represent them in fiscal court processes and to advise them on business issues. The activity can be carried out independently or as an employee.

The tasks of the tax consultant consist mainly of forward-looking advice for optimal tax avoidance, the preparation of bookkeeping, annual financial statements and tax returns as well as the subsequent review of tax assessments and representing the client in disputes with the tax office and before the tax court.

Legal advice in other areas of law (conditional task of the lawyers) and the auditing of annual and consolidated financial statements (conditional task of the auditors) are not permitted.

The tax consultant does not have to do all the work himself, but can use the help of expert staff (tax clerks, tax specialists, etc.). The condition is that the employees work exclusively in accordance with instructions under the professional supervision and professional responsibility of the tax consultant.

World

Austria

The profession of tax consultant is a liberal profession and is therefore not subject to the provisions of the trade regulations. The professional representation of tax consultants in Austria is the Chamber of Tax Consultants and Auditors — KSW (until December 2017: Chamber of Public Accountants — KWT). In order to be allowed to carry out the work of a tax consultant, a specialist examination is required.

The term chartered accountant includes the following professional groups in Austria:

  • Auditors
  • Tax consultant

Until 2005 there was also the designation "sworn auditor"; however, this authorization could no longer be obtained after 1999; the existing auditors were declared chartered accountants in 2005 by means of a transitional provision.

Furthermore, so-called self-employed accountants were members of the Chamber of Public Accountants. They worked as a chartered accountant, but were not allowed to use the professional title of chartered accountant. However, the possibility of taking up this profession ended on June 30, 2008. Existing professional qualifications as self-employed accountants could continue to be exercised, but the membership of this group of people in the Chamber of Public Accountants ended unless they were admitted to the tax consultant examination or a professional qualification according to the new Accounting Act (BibuG) acquired after a corresponding transitional period.

The rights and obligations of chartered accountants are regulated in the federal law on the chartered accountant professions (Wirtschaftstreuhandberufsgesetz — WTBG).

The Wirtschaftstreuhandberufsgesetz (WTBG) regulates which activities a tax consultant may carry out within the scope of his profession and which activities are reserved for tax consultants (§ 3 WTBG). This includes in particular the following activities:

  • Bookkeeping and payroll accounting
  • Preparation of annual accounts
  • Preparation of tax returns
  • Representation in tax and tax criminal proceedings before tax authorities
  • Other representation, especially before social security
  • consulting services
    • business advice
    • tax advice
    • Consulting services in connection with business accounting and advice on the organization and establishment of the internal control system
    • Reorganization advice, preparation of reorganization reports, etc.
    • Advice on legal matters, insofar as these are directly related to business trustee activities
  • fiduciary duties
  • Audit questions (not requiring the issuance of a formal audit opinion )
  • expert opinion

In addition to the "classic" activity of a tax consultant — tax advice and representation and the preparation of annual financial statements and tax returns — business advice for clients has recently become more and more important.

In Austria , the profession of tax consultant can also be practiced within the framework of a partnership or corporation, although the practice of the activity within the framework of a company is subject to certain conditions due to the Economic Professions Act (WTBG). These are

  1. Eligible corporate form : Only the following companies are eligible
    1. Offene Gesellschaft (OG) (until December 31, 2006 " Offene Kaufgesellschaft — OEG")
    2. Limited partnership (KG) (until December 31, 2006 “ Kommandit-Erwerbsgesellschaft — KEG”)
    3. Limited Liability Company (GmbH)
    4. Public limited company (AG) with restricted registered shares
  2. A written partnership agreement must be concluded
  3. Partners or shareholders may only be persons entitled to practice, their spouses and children or other trustee companies. There are also 'interdisciplinary companies' with accountants (according to § 71 WTBG), whereby the accountant is a shareholder or managing director.
  4. Any members of the Supervisory Board must have their place of residence in an EU or EEA member state and be particularly trustworthy and have an orderly economic situation.
  5. The company must take out financial loss liability insurance

Management and representation to the outside must be carried out by persons entitled to exercise the profession.

Germany

In Germany, Steuerberater is the professional license for tax advisors.

The area of ​​activity and the license are comprehensively regulated in the Tax Advisory Act and the associated implementing regulation. Many advisory activities are part of the reserved tasks and may only be carried out by licensed tax advisors and a few other professionals.

The professional representation of tax consultants in Germany are the Chambers of Tax Consultants, which come together under the umbrella of the Federal Chamber of Tax Consultants. A voluntary representation of interests takes place via the German Association of Tax Advisors based in Berlin.

Italy

In Italy, tax advisors are called commercialisti, and provide assistance on business management, business law, economics, finance, tax, accounting, commercial, corporate and administrative matters. Dottori commercialisti, who have a degree in economics, and ragionieri commercialisti, who have a specific high school diploma, were members of two different professional orders, but they were merged in 2008 and it is now impossible to become a commercialista without a laurea magistrale. Esperti contabili, whose roles are similar to those of a commercialista, must have a laurea, a first cycle degree that is equivalent to a bachelor's degree. According to the Italian law, the following activities are some of the roles of a commercialista:

  • the administration and liquidation of companies and assets;
  • surveys and technical advice;
  • inspections and administrative reviews;
  • verifications and investigations regarding the reliability of financial statements, accounts and records of a company.

Japan

In Japan, there is a specific license for tax advisors called certified public tax accountant (税理士, zeirishi). In order to obtain this qualification, an individual must pass a special state examination, or already be qualified as an attorney at law or certified public accountant.

South Korea

In South Korea, there is a specific license for tax advisors called certified tax accountant. In order to obtain this qualification, an individual must pass a special examination.

United Kingdom

In the UK, guidelines concerning professional conduct in relation to taxation are published in conjunction with the Chartered Institute of Taxation, the Association of Taxation Technicians, the Institute of Indirect Taxation, the Institute of Chartered Accountants in England and Wales, the Institute of Chartered Accountants of Scotland, the Society of Trust and Estate Practitioners (STEP) and the Association of Chartered Certified Accountants. These were prepared for the assistance of members of the various associations both generally in dealing with clients and the tax authorities and specifically in relation to irregularities and errors.

The guidelines, which include practical advice about a range of legal and ethical issues, are summarised as:

  • A member's primary duty is to ensure that his actions comply with the law. He/she owes a contractual duty to the client to act for him/her with the requisite degree of skill and care, and the contractual relationship should be governed by a letter of engagement. The member also has duties to the tax authorities, notably of compliance with the law and the honest presentation of his client's circumstances.
  • It is the taxpayer's responsibility to ensure that returns made to the tax authorities are correct and complete. It is for the member to assist him to decide on the extent and manner of disclosure of facts in relation to his tax affairs.
  • Where a member becomes aware that irregularities have occurred in relation to a client's tax affairs he should advise the client of the consequences, and the manner of disclosure. If necessary, appropriate specialist advice should be taken.
  • Where a client refuses to follow the advice of a member in relation to issues involving disclosure, the member should consider whether he should continue to act. If appropriate, specialist advice should be taken.
  • If mistakes are made by the tax authorities there may be a need, and in some cases a duty, on the part of the client and sometimes the member, to put matters right.
  • Members may have statutory duties of disclosure where they have suspicions of criminal activity.
  • When approached for information on a client's affairs by another adviser the member should ensure that he has his client's authority before making any disclosure.

United States

In the United States, paid tax return preparers are regulated but not licensed by the Internal Revenue Service of the United States Department of the Treasury. There are penalties for failure to disclose the identity of the preparer on the return, for the failure to give the taxpayer a copy of the return, and for negligence in preparing the return.

Practice before the Internal Revenue Service is regulated by Treasury Department Circular No. 230, Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, and Appraisers before the Internal Revenue Service. Most practice is limited to attorneys, Certified Public Accountants (CPAs), enrolled agents, and enrolled actuaries. Rendering tax advice is also regulated by Circular 230.

Failure to uphold these standards can result in disciplinary action ranging from reprimand to permanent disbarment from practice.

In the United States, the term "tax professional" is a generic term describing a variety of professions including enrolled agents, Certified Public Accountants (CPAs), financial planners, accountants, tax preparers, and some lawyers.

In the United States, by far the largest segment of tax professionals are individual tax preparers.

Switzerland

In Switzerland there are no admission restrictions for the profession of tax consultant. The professional title in Switzerland is “trustee”. The lack of access restrictions (practically anyone can open a fiduciary office) means that there are colloquially so-called "field, forest and meadow trustees".

Despite the lack of admission restrictions, there are a number of training courses that end with a state examination (the higher professional examination ) and can be regarded as a "seal of quality":

  • diploma fiduciary expert
  • diploma tax expert
  • diploma Auditors

In the field of auditing, however, there is a restriction on admission due to the Code of Obligations , which requires that certain companies and transactions be audited by a specially qualified auditor. This requirement is only met by professionals with a federal diploma as a certified public accountant and a certified Fiduciary experts and tax experts (as well as other professionals) with relevant professional experience.

On January 1, 2008, the new Audit Oversight Act came into force, which finally regulates the approval of auditors and auditing companies. Execution is carried out by a state supervisory authority.

As in other countries, a trustee is liable, audited or not, for damage he causes.

See also


This page was last updated at 2022-03-27 21:25 UTC. Update now. View original page.

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