Discussion
You are a Chartered Accountant. A businessman asks you to help with saving taxes payable to the Government. What will you do ?
Answer: A
The keyed response is to advise the client that you can help him to save the taxes payable, but only through legal means.
Reducing tax through deductions, exemptions and proper planning is legitimate tax planning, and helping clients with it is part of a Chartered Accountant's work. What is not permitted is tax evasion. So the professional response is to offer lawful help and make the limit clear.
Taking extra money to save tax 'by all means' is evasion and professional misconduct. Refusing outright treats a lawful request as wrong, and reporting the client to the tax authorities is unwarranted, since he has asked for help, not committed an offence.
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