CITN Test of Professional Competence (TPC) cheat sheet

Professional standards framework: competence, confidentiality, objectivity, integrity, and professional behaviour apply to every engagement; a member must not accept work outside their competence without supervision or referral.

Engagement acceptance rule: document scope, client identity, and intended use of the tax computation before work begins; unclear scope is a decision point to decline or renegotiate, not to proceed.

Tax computation structure: identify the chargeable person, the chargeable period, the taxable base, allowable deductions and reliefs, then apply rates in the statutory order; each step must be traceable to a source.

Source hierarchy: statute first, then case law interpreting it, then practice statements and guidance; guidance that conflicts with statute does not override statute.

Documentation standard: every figure in a return or computation needs a working paper showing source document, calculation, and reviewer sign-off; unsupported figures are treated as unverified.

Conflict of interest test: if acting for two parties whose interests diverge (buyer/seller, related companies, spouses), obtain informed consent or decline; consent is invalid where confidentiality would be breached.

Independence in fact and appearance: a member preparing accounts and also auditing the same entity compromises objectivity; safeguards must be documented or the engagement refused.

Error correction rule: when a material error is found in a filed return, quantify the effect, advise the client of the obligation to correct, and record the advice; the client decides, the member documents.

Fee and referral arrangements: contingent fees are prohibited where the outcome depends on an aggressive tax position; referral commissions must be disclosed to the client in writing.

Filing deadlines and penalties: late filing triggers fixed penalties that escalate with delay, plus tax-geared penalties on unpaid tax; interest accrues separately from penalties and is not waived by a successful appeal against the penalty.

Amendment windows: a taxpayer may generally amend a return within a statutory period after the filing date; after that, correction requires formal claim or assessment procedures with different time limits.

Assessment types: self-assessment, discovery/jeopardy assessment, and best-judgement assessment; the burden of displacing an assessment usually rests on the taxpayer, who must keep records to rebut it.

Record retention: records supporting a return must be kept for the statutory retention period measured from the end of the period or the filing date, whichever is later; failure to retain is itself a penalty exposure.

Information powers: the revenue authority may issue notices requiring documents or attendance; privileged legal advice is protected, ordinary accounting records are not.

Appeal sequence: internal review or reconsideration first, then independent tribunal, then appellate court; strict time limits apply at each stage and missing them can extinguish the right.

Penalty mitigation: reasonable care, disclosure, cooperation, and size of the tax involved drive the penalty percentage; unprompted disclosure attracts a larger reduction than prompted disclosure.

Payment on account and instalments: where income is uneven, a claim to reduce instalments is available but a wrong claim attracts interest and penalty; the claim must be justified by evidence.

Double taxation relief: credit is limited to the lower of foreign tax paid and domestic tax on the same income; excess credit is generally not refundable but may be carried forward depending on the treaty.

Threat categories: self-interest, self-review, advocacy, familiarity, and intimidation; identify the threat, evaluate its significance, then apply safeguards or decline the engagement.

Confidentiality exceptions: disclosure is permitted where required by law, by court order, by the professional body's disciplinary process, or with client consent; each exception must be documented.

Money laundering reporting: suspicion of proceeds of crime triggers an internal report to the nominated officer; tipping off the client is a criminal offence, so the member must not alert them.

Client identification (KYC): verify identity and beneficial ownership before accepting an engagement; failure to do so is a compliance breach regardless of the tax outcome.

Conflict between client instruction and law: a member must not assist in a return the member knows to be false or misleading; withdrawal is required, and the reason may be disclosed to the authority where law requires.

Aggressive planning boundary: arranging affairs to reduce tax is permitted; concealing income, creating false documents, or misrepresenting facts is not, and the distinction is intent plus factual accuracy.

Whistleblowing and public interest: where the client persists in unlawful conduct, the member considers whether disclosure is required or permitted, taking legal advice before acting.

Professional indemnity and competence: practising without adequate cover or outside competence breaches the standards; a member must refer complex matters to a specialist and record the referral.

Advertising and solicitation: claims of expertise must be accurate and verifiable; misleading marketing is a disciplinary matter independent of the tax advice quality.