The Institute of Indirect Taxation is one of the leading UK professional bodies involved in taxation which has issued updated guidance on how tax advisers should act in difficult situations.

The other bodies are:

• The Chartered Institute of Taxation
• The Association of Taxation Technicians
• The Association of Certified Chartered Accountants
• The Institute of Chartered Accountants in England and Wales
• The Institute of Chartered Accountants of Scotland and
• The Society of Trust and Estate Practitioners.

The guidance appears in the publication 'Professional Conduct in relation to Taxation' (click here to view), which has been issued by the bodies today. It concerns the tripartite relationship between the taxpayer, the tax adviser and HM Revenue and Customs (HMRC). It sets out the standards to be followed by members of the professional bodies when dealing with HMRC in connection with a client's tax affairs.

Rosalind Upton, chair of the working party which produced the guidance, said:

"We believe the new ‘Professional Conduct in relation to Taxation’ gives clear, concise and practical guidance which will help tax advisers when dealing with difficult situations such as what to do when a client refuses to make a full disclosure to HMRC or receives an excessive repayment. It also includes information on other key areas including client confidentiality and when information must be supplied to HMRC and other authorities without client consent."

The guidance has been reviewed by Ximena Montes Manzano of Atlas Chambers and also by HMRC.

This guidance was last updated in 2006.