SignatureAssignment: Ethics on the Job
SignatureAssignment: Ethics on the Job
Ihope to secure a job at Price Waterhouse Coopers as a tax manager. Thetax manager is responsible for preparing and reviewing taxcalculations and estimates, and partnering with the regional,corporate and federal finance and legal agencies. He/she is alsomandated with the responsibility of ensuring that the company is taxcompliant. Additionally, he/she must ensure accurate and timelyfiling of all personal and corporate income tax. The person also hasthe duty of establishing appropriate processes and systems for taxrisk management for the company. It is also his/her job to liaisewith tax authorities and review deferred and current tax provisions.
AccordingtoBolt-Lee and Plummer (2013), taxmanagers face a unique ethical problem in their roles as both theadvocate of their client and the government. Firstly, theorganization they work for expects them to help them legally evadetax. On the other hand, the government expects them to be taxenforcers (Marshall,Smith, & Armstrong, 2012).
TheIMA’s overarching ethical principles include responsibility,honesty, fairness, and objectivity(Institute of Management Accountants, 2017). Every professionalmust adhere to the following standards or risk being subjected todisciplinary action competence, credibility, confidentiality, andintegrity(Institute of Management Accountants, 2017). The IMA’s standard forethical practice requiresthat a practitioner must follow the established policies for conflictresolution set by his/her organization. If this approach does nothelp, one should talk with his/her immediate supervisors except whenthe latter has played a role in causing the ethical dilemma. Aprofessional can also decide to consult his/her attorney for legaladvice on the best course of action. Also, one can consult an IMA’sethics counselor or any other impartial advisor to obtainprofessional advice on the possible course of action(Institute of Management Accountants, 2017).
Theethical dilemma that a professional tax manager faces trying tostrike a balance between loyalty to the government and the client canbe handled by initiating a private discussion with an IMA’s ethicscounselor. In my position as a tax manager, my immediate supervisoris likely to be the chief executive officer. In such a case, whentrying to balance my loyalty to the company and the government thechief executive officer may not be of much help. As such, it will bea better option if I could get counsel from an IMA’s ethics advisorin understanding all the course of action.
Ifall employees of the PriceWaterhouse Cooperschoose not to adhere to the IMA’s standards, the company’sreputation will be ruined. For example, if workers go about revealingthe client’s confidential information, most customers will endtheir contract with the company. This will result in a decline inprofits which may be followed by the firing of some workers.Additionally, the professionals who fail to follow the IMA’sstandards of ethical practice may have their license revoked. Thismeans that the organization will have to initiate the process ofrecruiting, hiring, and training new tax managers.
AccordingtoVisockaite and Birskyte (2013),the core functions of the IMA’s standards of ethical practice areto inspire, guide, educate, and punish errant members. Thus,following the IMA’s guide helps a professional to make the correctdecision when faced with a situation that raises pertinent moralissues. Also, adhering to the ethical standards enhance the prestigeaccorded to the accounting profession. Besides, the IMA’sstandards also shield a person from facing the various penalties suchas the revocation of his/her professional license.
Toprevent or detect the unethical behaviors in the future, there is aneed for organizations to develop a strong ethical environment.Organizations can achieve this through the development of in-houseethics training and the establishment of a performance evaluationprocess. These strategies will offer incentives for ethical behaviorand punish those who engage in unacceptable conducts(Bolt-Lee & Plummer, 2013).
Inconclusion, tax managers face ethical problems on a daily basis themajor one being balancing the demands of their clients and theirprofessional obligations to the country. The IMA’s standards ofethical practice and conflict resolution guide is one of thedocuments that offer the crucial information on how a professionaltax manager should act when faced with ethical dilemmas. There areseveral benefits of adhering to the IMA`s guide. For instance, aperson who disregards the provisions of the IMA’s standard ofethical practice risks having his/her professional license revoked.
Bolt-Lee,C., & Plummer, E. (2013). A Showcase of Tax Research. Journalof Accountancy, 206(4),48.
Instituteof Management Accountants. (2017). Statement of ethical professionalpractice. Accessed on March 30, 2017.https://www.imanet.org/career-resources/ethics-center?ssopc=1
Marshall,R., Smith, M., & Armstrong, R. (2012). Ethical issues facing taxprofessionals: A comparative survey of tax agents and practitionersin Australia. AsianReview of Accounting, 18(3),197-220.
Visockaite,A., & Birskyte, L. (2013). Ethics in TaxAdministration. SocialiniuMokslu Studijos, 5(3).