Code Of Ethics For Tax Agent

  1. INTRODUCTION

Success Self Assessment System (SAS) relies on the ability of the parties involved such as the Lembaga Hasil Dalam Negeri (LHDN) and tax agents play a role in ensuring tax compliance continues to rise. Tax agent represents the taxpayers to be responsible in taxpaying and understand the importance and impact of tax legislations, government and country. LHDN ensure that the taxpayers keep a complete record and report income properly and pay taxes accordingly. The implementation of SAS has resulted tax agents with greater roles & responsibility to act as an advisor and consultant to the taxpayers.
Given the important role played by tax agents, the Code of Ethics is established to ensure the delivery of services to taxpayers is with customer-centric values and integrity. This should be followed by a tax agent in all dealings with tax matters with LHDN officials.

  1. PRINCIPLE

Code of Ethics is based on the principles of integrity, accountability, transparency, efficiency and social responsibility. A tax agent has a social responsibility to the nation overall. He needs to give the best advice to customers and stress upon the customer’s obligation to pay their taxes as required by law.

  1. OBJECTIVES

Code of Ethics is intended to foster a good tax practice through high standard of tax compliance and representation to achieve the following objectives:
(A) To instil professionalism among tax agents to ensure that all work is properly prepared, fair, efficient and comprehensive;
(B) To nurture the spirit of accountability in line with principles / practices that are based on the existing tax legislation and regulations;
(C) Support for social responsibility in line with the spirit of moral public morality
(D) Be a good example (role model) to its customers and provide responsible advices to the customers.

  1. CODE OF CONDUCT

A tax agent shall always abide by the following code of ethics:
4.1 Integrity
4.1.1 Good behaviour, honest, trust-worthy and transparent in the duties conduct and always give full cooperation when dealing with the LHDN. In dealing with the case customers, he shall submit only correct and accurate information, to the best of his knowledge.
4.1.2 Respect the rights of his clients as follows:
a) a high level of confidentiality for any information given to him; and
b) all the information shared to him is considered as *”classified material”. Such information should not be used for other purpose and cannot be disclosed to any party without permission.
* “classified material “refers to the income tax form / document / information acquired by **classified person as defined under Subsection 138 (5) of the ITA 1967.
** “classified person” refers to any person or employee who has access to classified materials when representing clients in tax matters.
4.1.3 Inform and advise clients on the progress of the case accordingly.
4.1.4 Do not abuse any money entrusted by his clients for the purpose of tax payments. Proof of tax payment shall be given to customers for record purposes.
4.1.5 Do not make any arrangement with people who do not have entitlement to support the work of the person concerned.
4.1.6 Do not solicit or abet LHDN officers to disclose any LHDN activities or provide information that can affect the interests of the LHDN, government and country.
4.1.7 Do not use political influence or the influence of power to persuade customers to do something to get special treatment from LHDN.
4.1.8 Do not engage in any taxation plan or scheme that can affect the national results.
4.2 Competence
A tax agent shall:
4.2.1 Always adopt a high level of professionalism, credibility and competency in the execution of his duties.
4.2.2 Ensure his knowledge in the field of taxation is always enhanced in line with the changes in legislation and the latest taxation practices.
4.2.3 Ensure his staffs are well-trained and skilled in all taxation matters and duties handled by them are meeting the desired standard.
4.2.4 Ensure that all information in the income tax form submitted to the LHDN is complete and accurate. The tax calculation is based on the provisions of law.
4.2.5 Handle only cases that are within his experience and ability to avoid unsatisfactory quality of services.
4.2.6 Ensure that the submission of an appeal against any assessment has solid grounds.
4.2.7 Provide accurate and complete answers to enquiries from LHDN within the prescribed period.
4.2.8 Understand and meet the guidelines issued by LHDN / relevant government agencies.
4.2.9 Manage the affairs of his customers in accordance with taxation procedures established by the LHDN.
4.3 Professionalism
A tax agent shall:
4.3.1 Provide advice to clients based on existing tax law
4.3.2 Explain to their customers on the duty and responsibilities as a taxpayer under law and educate customers about the importance of keeping record of all transactions regularly, particularly on business.
4.3.3 Advise clients to comply with predetermined tax payment regulations.

  1. General

Compliance with the code of ethics will be used as a criteria for certification and the renewal of the license of tax agent. In this Code of Ethics, “tax agent” means a tax agent as defined in Section 153 of the ACP 1967.
5.1 The tax agent approved under Paragraph 153 (3) (c) of the ACP 1967 shall indicate the approval number and the date of such approval in all correspondence with the LHDN.
5.2 The tax agent shall inform the LHDN should the representation of the client as tax agent is ceased. Letters addressed to the customer must be returned with an appropriate note.
5.3 Tax agents must constantly update his own tax affairs. Income tax forms and letters / documents shall be submitted within the prescribed period and the tax shall be paid within the time allowed.
5.4 Tax agents must always use electronic services provided by the LHDN.