The CITN Statement of Taxation Standard (STS) Five on Form and Content of Tax Advice/Opinion sets out guidance for members on certain aspects of providing advice to a client. The Statement also comments on circumstances in which a member has a responsibility to communicate with a client when subsequent developments affect advice that has previously been provided. However, this standard does not cover a member’s responsibilities when the expectation is that the advice rendered is likely to be relied upon by parties other than the client.
The CITN Statement of Taxation Standard (STS) Five was issued and gazetted in the Federal Republic of Nigeria Official Gazette Vol. 100 of June 2013. The standard became effective from 1st January 2013. It is divided into five sections:
Parts 1, 2 and 3 present the standards, Part 4 requires compliance with any disclosure requirement of the Companies Income Tax Act CAP C21, Laws of the Federation of Nigeria 2004 as amended to date, the Personal Income Tax Act and any other relevant laws. Part 5 discloses the effective date of the Standard, which is 1 January 2013.
Guidance on STS Five
The issues above should be reflected in the engagement letter confirming the client’s instructions to the member and the terms on which the advice is to be provided.
Tax advice is valuable service provided by professional tax practitioners. The form of advice may be oral or written; the subject matter may range from routine to complex. Since the range of advice is so extensive and because advice should meet the specific needs of a taxpayer, there is no single standard format or guideline for communicating to a taxpayer that can suit all circumstances. Hence, this Standard has outlined basic guidelines to assist members of the Institute when rendering such services to their clients.
The Institute’s Statement of Taxation Standards 1 to 9, and Professional Rules and Practice Guidelines can be assessed using the following link https://app.citn.org/home/tpgs.