Ethics in Tax Practice: Navigating the Shifting Landscape

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Ethics in Tax Practice: Navigating the Shifting Landscape

• 16 July 2025
• Caryn Maitland

For decades, tax practitioners have been trusted navigators through the dense forest of tax legislation, identifying the most efficient routes while ensuring their clients remain within the bounds of the law. But in a world marked by complex regulation, rapid digital transformation, and growing societal expectations, the ethical dimensions of tax practice are coming under sharper focus.

As international frameworks evolve and public pressure increases, the profession is being called to not only “do things right,” but to “do the right thing.” This shift is far from academic, it’s changing how tax advice is given, how risk is evaluated, and how professional accountants and tax practitioners define the line between legitimate planning and unethical conduct.

A Turning Point: IFAC’s Ethical Response to Aggressive Tax Planning

In 2023, the International Ethics Standards Board for Accountants (IESBA) proposed revisions to the IFAC Code of Ethics specifically aimed at curbing aggressive tax planning. These changes reflect a global recognition that merely following the letter of the law is no longer enough, particularly where tax arrangements are technically legal, but lack economic substance or are designed to frustrate the intent of the tax system.

These considerations introduce new responsibilities for professional accountants in public practice and in business to:

• Consider the reputation and transparency risks of the advice they provide
• Avoid involvement in tax schemes that exploit loopholes or lack commercial rationale
• Apply enhanced professional judgment where laws are unclear or open to interpretation
• Engage in meaningful discussions with clients about tax morality and the public interest

In essence, the Code is pushing practitioners beyond compliance, urging a values-based approach to tax strategy.

The Technological Tipping Point

The digitalisation of tax is also disrupting ethical terrain. From automated tax engines to AI-powered tax optimisation platforms, technology is increasing both the speed and complexity of tax planning. But it also introduces new risks:

• Who is accountable when AI-generated recommendations cross ethical lines?
• How can practitioners detect bias, manipulation, or errors in algorithmic advice?
• Are clients being adequately informed about the basis of automated tax strategies?

Technology is not neutral. While it promises efficiency, it demands a strong ethical compass to ensure its outputs serve the right ends,  and that practitioners do not abdicate professional judgment to a machine.

Will Sustainability Shape the Future of Tax?

As conversations around sustainability and ESG (Environmental, Social and Governance) continue to evolve, a new question is emerging: Will tax practices be scrutinised through the lens of sustainability?

The answer is: almost certainly. Consider the following developments:

• Tax transparency is increasingly seen as a pillar of good governance. Large organisations are being asked to disclose not just what tax they pay, but where and why.
• ESG reporting frameworks, such as the GRI and ISSB standards, are starting to incorporate tax-related disclosures, such as country-by-country reporting and alignment with the UN’s Sustainable Development Goals.
• Tax incentives and penalties are being used as levers for climate policy, such as carbon taxes, green investment credits, and “sin” taxes, all of which bring tax strategy into the sustainability spotlight.

For tax practitioners, this means an expansion of their role: from technician to advisor, from compliance enforcer to stakeholder communicator. The ethics of tax are no longer confined to legal interpretations, they are now about how tax strategy aligns with corporate values, long-term impact, and social legitimacy.

A New Ethical Horizon

In this evolving context, ethical tax practice is no longer about avoiding scandals or SARS penalties. It’s about how we frame our professional responsibility in a world of rising expectations.

It’s about asking:

• Is this tax structure transparent and defendable?
• Does it align with broader business integrity and sustainability goals?
• Am I exercising independent judgment, or simply enabling avoidance?
• Would I be comfortable explaining this to a regulator or the public?

These are not always easy questions, but they are the ones the future demands we ask.

The Bottom Line?

Ethical tax practice is entering a new era. As frameworks shift, technologies emerge, and sustainability reshapes the business landscape, tax professionals must be agile, informed, and anchored in strong ethical principles.

It’s not just about what we can do, it’s about what we should do.

Discover how evolving ethical standards, sustainability goals, and digital tools are reshaping tax practice. Gain practical insights into the latest developments from Caryn. Don’t miss our upcoming webinar — register here.

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