The subject of tax and ethics has never been more important.
And where is the leading accounting institute in the UK in this debate? Nowhere to be seen, at all.
Has the Institute of Chartered Accountants in England and Wales, which has a public duty in its charter, abandoned that duty at a time when leadership is needed?
It looks like it to me.
A profession is based on ethics. Right now the ICAEW is not providing ethical leadership. It's ducking the issue instead. And that is wholly unacceptable to me as a member, and to the public to whom it has a duty.
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Resign your membership Richard. Your thinking and opinions are already way beyond the ICEAW position.
But as a member they find it harder to ignore me
Another case of corporate capture?
Didn’t they publish new ethical guidance for accountants on this very issue, a year or so ago?
And what use have they been?
This is a very pertinent question, and shows the weakness of leadership in our profession, and the lack of any clear ethical commitment. They have often sided with the Big Firms, so it is not a surprise that their silence is an endorsement yet again.
As a fellow FCA I entirely agree with you on this, Richard.
During 35 years in practice I on countless occasions tried to rebut cynical comments from others along the lines of “oh, you’re an accountant? they’re the ones who fiddle people’s tax for them, aren’t they?”.
The profession’s job should be to see honest accounting and honest dealing. Otherwise how can it justify being a profession?
Congratulations Tom. I never get a follow up question when I tell people I’m an accountant. I have occasionally said I’m a doctor to check whether this was down to me or my chosen profession. The results were it was down to by profession although I must say I regret giving people dodgy advice about their bad backs and bowel disorders.
Also see Prem Sikka https://theconversation.com/we-are-light-years-away-from-the-days-of-cadbury-capitalism-14504
While the Big 4 dominate the Institute, much as they do now dominate the Chartered Institute of Taxation, then they’ll either support “Big Business” or they’ll keep quiet.
A very small story from another FCA who agrees completely with Richard’s view.
A couple of months ago, a local estate agent referred someone who was buying a house to me. The guy called and told me that he was self-employed and needed some accounts so that he could apply for a mortgage. I asked him what financial records he had and he replied that he had none. I asked him how he expected me to prepare accounts and he replied by saying “don’t you just make them up?”.
I’m not suggesting that view is widely held, although it may well be after the Big Four have been hauled over the coals again, but that it’s held at all ought to be of concern to ICAEW.
But let’s not kid ourselves, ICAEW, along with other accounting bodies and boards, was captured by the Big Four long, long ago. Perhaps that’s why it seems to pay far more attention to opening offices in Singapore, etc than dealing with such a fundamental issue as ethics.
I like Tom Morton have been in the profession for many years. And I too am aware of the negative comments about accountants being the facilitators of tax avoidance for rich and the dishonest, at the cost of the common good. “you people have become like Al Capone’s bookeeper” said one person to me.
Unfortunately when you hear Mr Whiting FCA and Mr Chowhdery FCCA comment on GAAR and reform of corporate reporting one is not at all surprised by such comments.
My profession has lost its moral compass over the recent years. Shameful.
As I have commented before, a great number of members, like myself, agree with many of your tax positions. Perhaps you push the envelope a bit to far sometimes, that’s I why I have urged you not to be (overly) left wing in case you are marginalised.
But a lot of the tax impetus debate has come from you. Taxation depends to a large extent on the compliance of the tax payer,you can’t enforce it by legislation alone so you need consent from all areas of the tax paying population.
Please do lead a campaign in the ICAEW. I am on a Tax Faculty committee there, it may cause me trouble, but it’s time I took a stand.
Can we talk?
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