Deontologie.pptx

# Regulation and ethics for accountants and tax advisors This section details the regulatory and ethical framework governing accountants and tax advisors, encompassing legal statutes, royal decrees, and the professional code of conduct, outlining their obligations and responsibilities. ## 1. Regulation and ethics for accountants and tax advisors ### 1.1 Overview of regulatory framework The regulatory framework for accountants and tax advisors is established by a combination of laws and royal decrees, which are overseen by the Institute for Tax Advisors and Accountants (ITAA). These regulations define the ethical principles and professional conduct expected of all members. * **Key Legislation:** The primary legislation is the Law of March 17, 2019, concerning the professions of accountant and tax advisor. * **Royal Decrees:** Several royal decrees further elaborate on the specific rules and procedures. These include: * Royal Decree of September 11, 2020, regarding the public register, qualification of third-country nationals and legal entities, institute operations, and professional insurance. * Royal Decree of September 11, 2020, concerning the professional training of accountants and tax advisors. * Royal Decree of December 9, 2019, establishing a quality assurance review regulation for external members and further detailing the use of engagement letters. * **Previous Regulations:** Older codes of conduct from the former IAB (Institute of Professional Accountants and Tax Consultants) and BIBF (Professional Institute of Accountants and Tax Advisors) remain applicable insofar as they do not contradict the new ITAA regulations. ### 1.2 Deontology: Code of Conduct Deontology refers to the set of ethical rules, both written and unwritten, that apply to the members of the institute. Non-compliance with these rules can lead to disciplinary sanctions. * **Fundamental Principle:** Professionals must exercise their duties with the required competence, integrity, honesty, and dignity in their dealings with clients, the institute, and colleagues. * **Scope:** The regulations apply to all "persons" registered in the public register, including members and trainees (natural persons and legal entities, internal and external). The term "professional" specifically refers to all members practicing independently (natural persons and legal entities). * **Broader Conduct:** Professional integrity can be compromised by actions outside the direct scope of professional practice, such as fraud or deception. ### 1.3 ITAA Law: Chapter 6 - Exercise of the profession (Articles 36-54) This chapter outlines the specific rules, obligations, and prohibitions that members and trainees must adhere to during the exercise of their profession. #### 1.3.1 Principle This section reiterates the application of rules to all registered individuals and emphasizes that professional integrity is paramount. #### 1.3.2 Independence Independence is a cornerstone of the profession, though not explicitly defined. It is crucial for maintaining objectivity and serving the public interest. * **Key Aspects of Independence for Professionals:** * Responsibility for the public interest. * Integrity and objectivity. * Professional competence and diligence. * Confidentiality and professionalism. * **Practical Considerations:** * Referrals to other service providers must be in the client's best interest, not driven by commissions. * Personal relationships that could compromise objectivity must be managed. * Financial independence is important; a significant portion of income from a single client can undermine independence. * **Internal vs. External Professionals:** * **External professionals** may need to refuse an assignment if professional duties cannot be fulfilled. * **Internal professionals** must maintain intellectual independence, which can sometimes lead to conflicts with employer instructions. #### 1.3.3 Organization of professional activities Professionals must organize their activities effectively, considering: * The nature and size of their client base. * The complexity of assignments. * Appropriate organizational and financial resources. * Adequate deployment of qualified personnel. #### 1.3.4 Competence All individuals must possess the necessary professional competence. This mandates continuous professional development (CPD). * **Permanent Training Obligation:** A minimum of 120 hours of CPD must be completed over three consecutive calendar years, with at least 20 hours per calendar year. * **Distribution of Hours:** Training must cover various areas, including competencies, deontology, social skills, management skills, and office organization. This applies to both professionals and trainees. * **Training Categories:** * **Category A:** Participation in recognized seminars, study days, training cycles, teaching at recognized institutions, scientific/technical publications, and distance learning with controls. * **Category B:** Involvement in institute committees/working groups and training organized by firms/networks for employees. * **Hour Allocation:** * Minimum 70% of CPD hours (84 hours) must be from Category A, with a maximum of 30 hours per calendar year from Category A. * Maximum 30% of CPD hours (36 hours) can be from Category B. * **Reporting:** Professionals must submit an annual report on their CPD activities. * **Employee Training:** Employers are responsible for ensuring the CPD of their employees. #### 1.3.5 Clients When accepting an assignment, professionals must ensure they have the necessary competence, cooperation, and time. * **Engagement Letter:** An engagement letter is mandatory for all assignments, outlining mutual rights and obligations. This applies regardless of the assignment's nature, frequency, fee, client type, or practice method. * **Termination of Professional Relationship:** Either party can terminate the professional relationship if trust is broken. Notice periods or compensation for damages (e.g., lost fees) may apply, as stipulated in the engagement letter. However, demanding payment for unrendered services violates professional dignity. * **Dossier Transfer:** * Administrative costs for dossier transfer to another professional are permissible but should not impede the actual handover. * All client-owned books, documents, and electronic data must be returned promptly upon request. * Professionals do not have a right of retention over client dossiers for unpaid fees. * **Ownership of Documents:** Clients own their dossiers, including documents prepared by the professional based on client-provided information. Professionals must retain copies for ten years. * **Dossier Handover:** * Upon non-payment of fees, the successor professional may urge the client to pay, but is not obligated to link the start of their work to this payment. * An inventory of the dossier should be made during transfer to avoid disputes. * The previous professional must make all documents available to the client or successor professional within 15 days. * If a dossier is transferred to someone not authorized to practice, the institute must be notified. #### 1.3.6 Liability Professionals are liable for the execution of their assignments. External members and trainees must have civil liability insurance. Professionals cannot partially exempt themselves from liability through special agreements. #### 1.3.7 Fees Professionals are entitled to fees and cost reimbursements only for completed assignments. * **Fee Determination:** Fees must be proportionate to the nature, importance, complexity, scope, and extent of the assignment. * **Prohibited Practices:** It is forbidden to receive or grant commissions, brokerage fees, or any other advantages related to an assignment. * **Fee Agreements:** Clear agreements on fee amounts, calculation methods, collection, and consequences of late or non-payment are essential. Professionals have an information duty, and all agreements must be documented in the engagement letter. #### 1.3.8 Incompatibilities and conflicts of interest Professionals must not accept assignments that compromise their objectivity or create a conflict of interest. * **Permitted Activities:** External advisory services, fiscal, corporate, and social support, financial plan preparation, and roles as syndic or independent director (with additional requirements). * **Prohibited Activities:** Acting as an insurance broker/agent, real estate agent, engaging in banking activities, or other activities requiring FSMA registration. #### 1.3.9 Confidentiality (Discretionary Duty) Professionals are bound by a duty of confidentiality regarding all information entrusted to them, whether explicitly or implicitly, in the course of their duties. * **Exceptions:** * Testifying in legal proceedings. * When legally compelled to disclose (e.g., anti-money laundering legislation). * Exercising the right of defense in disciplinary proceedings. * When explicitly released from confidentiality by the client. * **Sharing Information:** When sharing information with staff, trainees, or other professionals, the confidential nature must be respected. * **Scope:** This duty applies to both external and internal professionals. * **Legal Basis:** Article 458 of the Penal Code criminalizes the disclosure of professional secrets, with exceptions for legal testimony and mandatory disclosures. This applies to material (e.g., letters) and immaterial (e.g., oral) information. #### 1.3.10 Relations with the Institute All registered individuals must be inscribed in the institute's public register, and all necessary information must be communicated to the Council of the Institute, including CPD reports. #### 1.3.11 Contributions All registered individuals (natural and legal persons) and trainees must pay an annual contribution to the Institute. ### 1.4 ITAA Law: Chapter 11 - Enforcement (Articles 85-120) This chapter details the disciplinary procedures and sanctions for non-compliance with regulations. #### 1.4.1 Reprimand A reprimand can be issued for reasons such as: * Failure to pay institute contributions. * Lack of civil liability insurance. * Non-participation in mandatory CPD. * Failure to confirm a quality review date within the specified period. * The individual must comply with the reprimand within three months. Final reprimands are noted in the file for five years. #### 1.4.2 Professional Discipline Disciplinary actions are handled by a Disciplinary Committee. * **Disciplinary Sanctions:** Warning, reprimand, fine, prohibition from accepting or continuing certain assignments, suspension, or striking off the register. * **Publication:** The Disciplinary Committee may order the anonymized publication of its decisions. * **Suspension:** This involves a temporary prohibition from practicing the profession and using the title, lasting no longer than two years. Suspended individuals are removed from the public register but remain subject to institute obligations. They are also prohibited from participating in general assemblies and institute organs. * **Striking Off:** This is a permanent prohibition from practicing the profession and using the title. * **Erasure of Sanctions:** Disciplinary sanctions are erased from the record after five years, except for suspension and striking off. #### 1.4.3 Withdrawal of qualification and other administrative penalties The Council of the Institute may withdraw a professional's qualification (e.g., as an accountant, tax advisor) in the following cases: * Following a decision to strike off by the Disciplinary Committee. * When the conditions for admission to the profession are no longer met. * Failure to comply with a final reprimand within three months. * After five years, individuals may request the restoration of their qualification if they meet the admission criteria again. ### 1.5 Client acceptance policy Every firm must identify and evaluate the risks it faces. Professionals are expected to take preventive measures, and ignorance of a client's fraudulent activities is no longer an accepted defense. * **Anti-Money Laundering (AML) Requirements:** * Customer due diligence (identification and verification) for clients, their representatives, and ultimate beneficial owners. * Record-keeping of data and evidence. * Ongoing monitoring of transactions and business relationships. * Documentation of information obtained during customer due diligence. * These procedures must be documented internally. * **Mandatory Application:** The client acceptance policy must be applied without exception, regardless of the assignment's nature, duration, fee, or client. * **Phases of Client Acceptance:** * **Acceptance:** Assessing if a new assignment can be accepted. This involves getting to know the client's business, reviewing independence rules, evaluating client integrity (reputation, attitude), assessing the firm's capacity (knowledge, workload), and ensuring the client provides necessary information. * **Continuation:** Periodically reassessing if the professional relationship can be continued. This includes checking for ongoing independence, client integrity (cooperation, fee payment), and the firm's continued capacity. Documentation is crucial, potentially leading to adjustments in the engagement letter or termination of the relationship. * **Termination:** Ending the professional relationship due to a breach of trust, serious contractual default, or compromised independence. This requires thorough documentation and written notification to the client, ensuring timely communication (e.g., not immediately before a tax deadline). ### 1.6 Examples of disciplinary decisions * **December 7, 2022 (French-speaking Disciplinary Committee):** A firm and its managing partner received a warning and an eight-day suspension, respectively, for failing to use engagement letters. This highlighted that practicing through a company does not exempt the accountant from their deontology. * **March 23, 2023 (Dutch-speaking Disciplinary Committee):** Two parties were suspended for one month and fined for requesting and unjustly obtaining a "Corona compensation premium." This involved simulating a revenue decrease by manipulating invoice dates. * **September 14, 2023 (Dutch-speaking Disciplinary Committee):** A certified accountant was struck off the register and fined for failing to meet the mandatory CPD requirements, even after partially retiring but continuing some professional activities. The conscious decision to disregard CPD obligations was deemed irresponsible. --- # Client acceptance policy This section outlines the crucial principles and procedures governing the acceptance and continuation of client relationships, emphasizing professional integrity, independence, and risk assessment within the framework of the ITAA regulations. ### 2.1 Overview of client acceptance policy The client acceptance policy mandates that every professional firm must identify and evaluate the risks they encounter. Professionals are required to take preventative measures, and ignorance regarding a fraudulent client is no longer considered an acceptable defence; demonstrable efforts to prevent such situations are required. This policy applies universally, irrespective of the nature, duration, fees, or other characteristics of the engagement. The client acceptance policy encompasses three distinct phases of a professional relationship: #### 2.1.1 Acceptance phase This initial phase involves determining whether a new engagement can be accepted. Key considerations include: * **Initial meeting:** Getting acquainted with the prospective client and their business. * **Independence rules:** Assessing potential financial, familial, or other relationships that could compromise independence. * **Client integrity:** Evaluating the client's reputation, conduct, and the urgency of their needs. * **Capability to perform the engagement:** Ensuring the firm possesses the necessary knowledge, capacity, and available resources. * **Information provision:** Verifying that the client provides the required information, such as identification details. #### 2.1.2 Continuation phase This phase involves assessing whether an ongoing professional relationship should be continued. Professionals must re-evaluate: * **Independence:** Confirming that independence remains intact. * **Client integrity:** Monitoring the client's ongoing cooperation and adherence to payment obligations for fees. * **Resources:** Assessing if sufficient time, resources, and manpower remain available. All information gathered during this phase must be documented and linked to the decision to continue the relationship (potentially with an adjusted engagement letter or new agreements) or to terminate it. #### 2.1.3 Termination phase This phase addresses the ending of a professional relationship. Common reasons for termination include: * **Breach of trust:** A fundamental breakdown in the relationship. * **Serious contractual default:** Significant failures to meet agreed-upon terms. * **Compromised independence:** Situations where independence can no longer be maintained. When terminating a relationship, it is crucial to: * Document the reasons thoroughly. * Notify the client in writing, preferably via registered mail. * Provide timely notification to the client, avoiding critical deadlines (e.g., the day before a VAT return is due). ### 2.2 Regulatory context and principles The client acceptance policy is underpinned by various legal and ethical frameworks. #### 2.2.1 Anti-money laundering legislation This legislation specifically mandates attention to: * **Client due diligence:** This includes identification and verification of clients, their representatives, and the ultimate beneficial owners. It also involves record-keeping of data and supporting evidence. * **Ongoing vigilance:** Continuous monitoring of transactions and business relationships, along with maintaining records of information obtained during this process. These requirements must be codified in internal procedures. #### 2.2.2 Engagement letter A mandatory engagement letter must be prepared for every assignment. This document formalizes the mutual rights and obligations of both parties. The requirement for an engagement letter persists regardless of: * The nature of the assignment. * The periodicity or regularity of the work. * The amount of the fee. * The type of client or the activity performed. * The manner in which the external professional conducts their practice. Without an engagement letter, there is a risk of misunderstanding regarding expectations. #### 2.2.3 Professional independence Independence is a fundamental principle for all professionals. This includes: * **Responsibility for the public interest:** Acting in a manner that serves the broader public good. * **Integrity and objectivity:** Maintaining honesty and impartiality. * **Professional competence and diligence:** Possessing and applying the necessary skills and care. * **Confidentiality and professionalism:** Safeguarding client information and upholding professional standards. Independence can be compromised by: * **Referrals:** When referring a client to another service provider (e.g., insurance broker), the referral must be based on the client's best interests, not the referrer's commission. * **Personal relationships:** Close personal ties can affect objectivity. * **Financial dependence:** When a significant portion of a professional's income stems from a single client, independence may be undermined. External professionals may need to refuse an assignment if their professional ethics cannot be upheld. Internal professionals may face conflicts between ethical rules and employer instructions, necessitating intellectual independence. #### 2.2.4 Client's right to their files A client always owns their files and must have access to them at any time. Professionals do not have a right of retention over client files, even if fees remain unpaid. Files include all documents, accounting records, balance sheets, tax returns, and other financial data. Documents prepared by the professional based on client-provided information are also the property of the client. However, professionals must retain copies of the data for a period of 10 years. When fees are outstanding, the successor professional may encourage the client to settle, but the commencement of work is not contingent upon this. To prevent disputes, an inventory of the file should always be created during a handover. The previous professional must make all documents available to the client or the successor professional promptly, and no later than within 15 days. If a successor professional is taking over from someone not authorized to perform regulated professional acts, the Institute must be notified in writing. Similarly, if a dossier is to be transferred to a person not authorized to perform such acts, the Institute must be informed before the transfer. ### 2.3 Professional conduct and disciplinary measures The ITAA legislation outlines a framework for maintaining professional standards and addressing breaches. #### 2.3.1 Deontological principles The overall deontological framework consists of both written and unwritten rules applicable to all members. Non-compliance can lead to disciplinary sanctions. The fundamental principle is that professionals must conduct their practice with the required competence, integrity, honesty, and dignity in their dealings with clients, the Institute, and colleagues. Professional integrity can be jeopardized by actions outside the strict scope of professional practice, such as fraud or deception. #### 2.3.2 Competence and continuous training All individuals registered with the Institute must possess the necessary professional competence to perform their activities and assignments. Mandatory continuous professional development (CPD) is required. * **CPD requirements:** A minimum of 120 hours of CPD must be completed over a period of three consecutive calendar years, with at least 20 hours per calendar year. These hours must be distributed across various domains, including competencies, deontology, social skills, management skills, and office organization. CPD is also mandatory for trainees, including specific seminars. * **CPD categories:** * **Category A:** Participation in recognized seminars, study days, and training cycles; lecturing at recognized institutions; authoring scientific or technical publications; distance learning (with minimum duration, control, and assessment). * **Category B:** Participation in Institute committees, working groups, and cells; attending training and seminars organized by firms or networks for their staff and professionals. * **CPD hour allocation:** Category A must constitute at least 70% of the minimum hours (84 hours), with a maximum of 30 hours per calendar year deductible from Category A. Category B can account for a maximum of 30% of the minimum hours (36 hours). * **Reporting:** An annual report on completed CPD must be submitted. * **Staff development:** Professionals must ensure the training of their employees, as well-trained staff contribute to quality service delivery. #### 2.3.3 Disciplinary actions The ITAA has a disciplinary system to enforce its regulations. * **Reprimand:** This may be issued for reasons such as non-payment of Institute contributions, failure to insure for civil liability, non-compliance with mandatory CPD, or failure to confirm quality review dates within the specified timeframe. A reprimand must be addressed within three months, and a definitive reprimand remains on file for five years. * **Professional discipline:** A Disciplinary Committee handles professional disciplinary matters. Sanctions can include a warning, reprimand, fine, prohibition from accepting or continuing certain assignments, suspension, or striking off. The committee may order the public disclosure of its decisions, potentially anonymously. * **Suspension:** This involves a prohibition from practicing professional activities and using the title for a specified period, not exceeding two years. Suspended individuals are removed from the public register but remain bound by their obligations to the Institute. * **Striking off:** This is a permanent prohibition from practicing professional activities and using the title. * **Withdrawal of status and administrative penalties:** The Institute's Council may withdraw a professional's status (e.g., certified accountant, certified tax advisor) following a decision to strike off by the disciplinary committee, if the admission requirements are no longer met, or if the individual fails to comply with a definitive reprimand within three months. After five years, an individual may apply to have their status reinstated if they again meet the admission requirements. > **Tip:** Understanding the disciplinary measures is crucial for recognizing the seriousness of deontological breaches and ensuring compliance with professional obligations. ### 2.4 Specific examples of disciplinary decisions The provided text includes examples of disciplinary decisions that illustrate the application of the rules: * **Decision of December 7, 2022 (French-speaking Disciplinary Committee):** A warning and an 8-day suspension were imposed on a company and its managing partner for failing to draft engagement letters. This highlights that executing work through a company does not exempt the accountant from their deontological duties. * **Decision of March 23, 2023 (Dutch-speaking Disciplinary Committee):** Two parties were suspended for one month and fined for improperly claiming a "Corona compensation premium" by manipulating turnover figures and invoice dates. This decision underscores the importance of integrity and honesty, even after repayment of unduly obtained funds. * **Decision of September 14, 2023 (Dutch-speaking Disciplinary Committee):** A certified accountant was struck off for failing to comply with the mandatory continuous professional development requirements. The individual's argument that they felt less need for CPD after semi-retirement was deemed insufficient, as they continued to exercise their activities. This emphasizes that as long as professional activities are partially maintained, CPD obligations remain. --- # Disciplinary proceedings and sanctions This section outlines the enforcement mechanisms for ethical breaches, detailing the types of penalties that can be imposed upon members of the Institute for Tax Advisors and Accountants (ITAA) for non-compliance with professional duties. ### 3.1 Deontology and its application Deontology encompasses the set of written and unwritten rules of conduct applicable to members and trainees of the ITAA. It is fundamentally about exercising the profession with the required competence, integrity, honesty, and dignity, in relation to clients, the institute, and colleagues. The ITAA law, specifically Chapter 6 (Articles 36-54) on the exercise of the profession, details these obligations and prohibitions. #### 3.1.1 Scope of application The rules apply to all "persons" inscribed in the public register, which includes all members and trainees (natural persons and legal entities, internal and external). The term "professional" refers to all members who practice the profession independently (natural persons and legal entities). Professional integrity can be compromised by actions outside the strict scope of professional practice, such as forgery or fraud. #### 3.1.2 Core principles of professional conduct * **Independence:** Every "person" must act with complete independence, respecting deontological principles. For "professionals," this includes responsibility to the public interest, integrity, objectivity, professional competence, diligence, confidentiality, and professionalism. Independence is not explicitly defined but is of fundamental importance, influencing referral decisions and relationships with clients and employers. * **Organization of professional activities:** Professionals must organize their activities based on the nature and scope of their client base, the complexity of assignments, adequate organizational and financial resources, and the appropriate deployment of qualified personnel. * **Competence:** Every "person" must possess the necessary professional competence for their activities. This necessitates ongoing training, with oversight provided by the Council of the Institute for professionals and the Training Committee for trainees. * **Continuing Professional Development (CPD):** A minimum of 120 hours of CPD is required over three consecutive calendar years, with at least 20 hours per calendar year. These hours must cover various areas, including competencies, deontology, social skills, management skills, and office organization. CPD is also mandatory for trainees. * **Category A CPD:** Includes participation in recognized seminars, training days, and educational courses; teaching at recognized institutions; preparing scientific or technical publications; and distance learning with built-in controls. * **Category B CPD:** Includes participation in committees, working groups, and cells of the Institute, as well as training organized by firms or networks for their staff. * **CPD Distribution:** A minimum of 70% of CPD hours must be from Category A (84 hours), with a maximum of 30 hours per calendar year from Category A. A maximum of 30% can be from Category B (36 hours). Annual reports on CPD must be submitted. * **Employee Training:** Professionals must ensure the training of their employees to guarantee quality service. * **Clients:** Before accepting an assignment, professionals must ensure they have the necessary competence, cooperation, and time. A written engagement letter detailing mutual rights and obligations is always required, regardless of the assignment's nature, frequency, fee, client type, or the professional's practice method. * **Termination of professional relationship:** Either party can terminate the professional relationship if trust is broken. Notice periods or compensation for damages (e.g., lost fees) may apply, but these should not be excessive. Administrative costs for dossier transfer are permissible but should not hinder the actual transfer. * **Client ownership of files:** Clients own their dossiers and have the right to access them at any time. Professionals do not have a right of retention over client documents, even if fees remain unpaid. Professionals must retain copies of data for 10 years. * **Dossier transfer:** Upon a client's request, all books, documents, and electronic data belonging to the client must be promptly handed over. When fees are outstanding, the succeeding professional may urge payment but is not obliged to link the start of their work to it. An inventory of the dossier should be created upon transfer to avoid disputes. Predecessors must make all documents available to the client or successor within 15 days. * **Liability:** Professionals are liable for the execution of their assignments. All external members and trainees must be insured for civil liability. It is prohibited to partially or fully evade liability through special agreements. * **Fees:** Professionals are only entitled to fees and cost reimbursement for completed assignments. Fees must be proportionate to the assignment's nature, importance, complexity, scope, and extent. Receiving or granting commissions or brokerage fees related to an assignment is prohibited. Clear agreements on fee calculation, invoicing, and consequences of late or non-payment are crucial and must be documented in the engagement letter. Professionals have an information duty regarding fees. * **Incompatibilities and conflicts of interest:** Professionals must not accept assignments that compromise their objectivity or involve a conflict of interest. Prohibited activities include acting as an insurance broker, real estate agent, or engaging in banking activities requiring FSMA registration. Permitted activities may include external advisory services, tax, corporate, and social matters guidance, financial plan preparation, and acting as a liquidator or independent director (with additional requirements). * **Confidentiality (duty of discretion):** Professionals are bound to maintain confidentiality of all entrusted data, whether explicit or implicit, obtained during their professional practice. Exceptions include testifying in court, legal obligations (e.g., anti-money laundering legislation), and express release from the client. When sharing information with staff or other professionals, the confidential nature must be respected. This duty applies to both external and internal professionals. Article 458 of the Criminal Code penalizes the disclosure of entrusted secrets without legal justification. * **Relations with the Institute:** All individuals must be registered in the public register. Information must be communicated to the Council of the Institute, such as annual CPD reports. Annual contributions are payable by registered persons and trainees. * **Client acceptance policy:** Each firm must identify and evaluate risks. Professionals must take preventive measures, as ignorance of a client's fraudulent intent is no longer accepted. The anti-money laundering legislation mandates customer due diligence (identification, verification, data and evidence retention), ongoing vigilance, and documenting these procedures internally. This policy applies without exception and covers acceptance, continuation, and termination phases. * **Acceptance:** Assessing independence, client integrity (reputation, attitude), and the ability to execute the assignment. * **Continuation:** Regularly re-evaluating independence, client integrity, and resource availability. * **Termination:** Triggered by a breach of trust, serious contractual default, or compromised independence. Clients must be informed promptly and in writing, with adequate notice. ### 3.2 Disciplinary proceedings and sanctions The ITAA has a framework for enforcing deontological rules through disciplinary proceedings and sanctions. Chapter 11 (Articles 85-120) of the ITAA law outlines the enforcement mechanisms. #### 3.2.1 Reprimand A reprimand is issued for reasons such as: * Non-payment of contributions to the Institute. * Failure to obtain professional liability insurance. * Non-participation in mandatory continuing professional development. * Failure to confirm a quality review date within the stipulated period. The individual must comply with the reprimand within three months. A final reprimand is recorded in the member's file for five years. #### 3.2.2 Professional discipline Disciplinary proceedings are conducted by a disciplinary committee. Sanctions are imposed for breaches of legal, regulatory, and normative frameworks. The disciplinary sanctions include: * Warning * Reprimand (Berisping) * Fine * Prohibition from accepting or continuing certain assignments * Suspension * Striking off (Schrapping) The disciplinary committee may order the public announcement of its decisions, potentially anonymized. * **Suspension:** This involves a prohibition from practicing professional activities and using the professional title for a specific period, not exceeding two years. Suspended individuals are removed from the public register but remain subject to their obligations to the Institute and are prohibited from participating in the general assembly and any Institute organs. * **Striking off:** This is a permanent prohibition from practicing professional activities and using the professional title. Disciplinary sanctions, except for suspension and striking off, are expunged from the record after five years. #### 3.2.3 Withdrawal of status and other administrative penalties The Council of the Institute may withdraw the professional status of accountants and tax advisors in the following circumstances: * Following a decision of striking off by the disciplinary committee. * When the conditions for admission to the profession are no longer met. * When an individual fails to comply within three months of a final reprimand becoming effective. After five years, an individual may apply for reinstatement of their status if they meet the admission requirements again. ### 3.3 Examples of disciplinary decisions * **December 7, 2022:** A warning and an eight-day suspension were imposed on a company and its managing partner for professional errors and the absence of engagement letters. The court highlighted that practicing through a company does not absolve the individual accountant of their deontological obligations, including the requirement for engagement letters. * **March 23, 2023:** A one-month suspension and a fine of 900.00 euros were imposed on two parties for dishonesty and an unlawful premium application. An accountant had falsely claimed a "Corona compensation premium" by manipulating turnover figures. * **September 14, 2023:** A certified accountant was struck off the register and ordered to pay 990 euros in procedure costs for failing to comply with mandatory continuing professional development requirements after partially reducing their activities upon retirement. The court emphasized that the obligation to complete CPD hours and report them continues as long as professional activities are not fully ceased. > **Tip:** Understanding the specific disciplinary sanctions and the grounds for their imposition is crucial. Pay close attention to cases involving engagement letters, professional integrity, and continuing professional development, as these are frequently tested. Always ensure documentation is thorough and compliant with regulations. --- ## Common mistakes to avoid - Review all topics thoroughly before exams - Pay attention to formulas and key definitions - Practice with examples provided in each section - Don't memorize without understanding the underlying concepts

| Term | Definition | |------|------------| | Deontology | A system of moral principles or rules governing the conduct of a profession, encompassing both written and unwritten rules of behavior that members must adhere to. | | ITA | Institute for Tax Advisors and Accountants | | BIBF | Belgian Institute of Accountants and Tax Consultants (predecessor to ITAA) | | Professional Titles | Official designations or qualifications that individuals can obtain and use in the practice of their profession, regulated by specific bodies. | | Regulation | A rule or directive made and maintained by an authority, such as a government or professional institute, to control or govern conduct. | | Accountant | A professional who examines and prepares financial records, ensuring accuracy and compliance with regulations, and providing financial advice. | | Tax Advisor | A professional who provides expert advice on tax matters, helping individuals and businesses navigate tax laws and optimize their tax positions. | | Public Register | An official list or record that is accessible to the public, containing information about registered professionals and their credentials. | | Third Countries | Nations or regions that are not part of a specified group, in this context, referring to individuals or entities from outside the European Union or other relevant jurisdictions. | | Professional Insurance | A type of liability insurance that covers professionals against claims of negligence or misconduct arising from their work. | | Professional Training | Educational programs and courses designed to equip professionals with the necessary knowledge, skills, and competencies required for their practice. | | Quality Assurance | A systematic process of reviewing the quality of work or services to ensure they meet specified standards and requirements. | | Engagement Letter | A formal written agreement between a professional and a client that outlines the scope of services, responsibilities, fees, and other terms of engagement. | | Code of Ethics | A set of principles and rules that guide the ethical conduct of professionals, ensuring integrity, objectivity, and professionalism in their practice. | | Fundamental Principle | A core tenet or belief that serves as the foundation for a system of rules or a profession, such as professional integrity and dignity. | | Competence | The ability to do something successfully or efficiently, requiring appropriate skills, knowledge, and experience. | | Integrity | The quality of being honest and having strong moral principles; moral uprightness. | | Dignity | The state or quality of being worthy of honor or respect; a sense of self-respect. | | Clients | Individuals or organizations that receive professional services from an accountant or tax advisor. | | Institute | A professional body or organization that governs and regulates a particular profession, such as the ITAA. | | Colleagues | Other professionals practicing in the same or a related field. | | Definitions (Art. 2) | Section within a legal or regulatory document that provides precise meanings for key terms used throughout the text. | | Exercise of the Profession (Art. 36-54) | A chapter or section in a law or regulation that details the rules, requirements, and guidelines for practicing a specific profession. | | Principle | A fundamental truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning. | | Independence | The ability to act or think without being guided or influenced by others; crucial for objectivity and unbiased professional judgment. | | Public Interest | The welfare or well-being of the general public, which professionals are expected to uphold. | | Objectivity | The quality of being impartial, unbiased, and not influenced by personal feelings or opinions. | | Professional Competence | The possession of the required skills, knowledge, and experience to perform professional duties to a satisfactory standard. | | Diligence | Careful and persistent work or effort. | | Confidentiality | The state of keeping or being kept secret or private; a professional obligation to protect sensitive information. | | Professionalism | The conduct, aims, or qualities that characterize or mark a professional or a professional person. | | Organization of Professional Activities | The structured management and execution of tasks and services within a professional practice, considering client base, workload, and resources. | | Professional Qualifications | The formal recognition of an individual's skills, knowledge, and experience, often awarded by a professional body or educational institution. | | Continuous Training | Ongoing education and professional development activities undertaken by professionals to maintain and enhance their skills and knowledge. | | Stage Commission | A committee or body responsible for overseeing the traineeship or internship period for aspiring professionals. | | Categories of Training | Different ways in which professional development hours can be earned, often categorized for reporting and validation purposes. | | Mandatory Training Hours | A minimum number of hours of professional development that individuals must complete within a specified period to maintain their professional standing. | | Clients' Files | Records and documents pertaining to a client's affairs, maintained by the professional. | | Professional Relationship | The connection and interactions between a professional and their client, governed by ethical and contractual considerations. | | Termination of Professional Relationship | The conclusion of the engagement between a professional and a client. | | Breach of Trust | The violation of confidence placed in a professional by a client. | | Notice Period | A specified period of time that must be given before a contract or professional relationship can be terminated. | | Compensation for Termination | A payment made to cover damages or losses incurred due to the premature ending of a contract or relationship. | | Administrative Costs | Expenses incurred in managing and processing client files, such as costs for transferring documents. | | Retention Right | The legal right of a professional to withhold a client's documents or files as security for unpaid fees; in this context, it is explicitly stated that professionals do not have this right. | | Inventory | A detailed list of items, in this context, a list of documents and records within a client's file. | | Professional Act | A regulated activity that can only be performed by authorized professionals. | | Liability | Legal responsibility for one's actions or omissions. | | Civil Liability | Legal responsibility for harm caused to another person. | | Fee | Payment made to a professional for their services. | | Reimbursement of Costs | Compensation for expenses incurred by the professional in the course of providing services. | | Commission | A fee paid to an agent or salesperson for completing a transaction. | | Brokerage Fees | Fees paid to an intermediary for facilitating a transaction. | | Information Obligation | The duty of a professional to provide clients with necessary information, especially regarding fees and services. | | Incompatibilities | Situations or roles that are mutually exclusive or conflicting, preventing a professional from undertaking certain engagements. | | Conflict of Interest | A situation in which a person or organization is involved in multiple interests, one of which could corrupt their motivation. | | Secrecy / Duty of Discretion | The obligation to keep confidential any information learned in the course of professional duties. | | Witness Testimony | Providing evidence or testimony in a legal proceeding. | | Anti-Money Laundering Legislation | Laws and regulations designed to prevent criminals from disguising illegally obtained funds as legitimate income. | | Right of Defense | The legal right of an individual to present their case and defend themselves in disciplinary or legal proceedings. | | Employer | An individual or organization that pays wages to employees. | | Employee | A person employed for wages or salary. | | Contributions | Payments made by members to support the operations of a professional institute. | | Enforcement | The act of compelling observance of or compliance with a law, rule, or obligation. | | Admonishment | A warning or reprimand. | | Professional Discipline | The system of rules and penalties used to maintain professional standards and punish misconduct. | | Appeal | A request made to a higher authority to review a decision. | | Fine | A sum of money exacted as a penalty for an offense. | | Prohibition from Accepting Assignments | A disciplinary sanction that prevents a professional from taking on new client engagements. | | Suspension | The temporary removal of a professional's right to practice. | | Striking Off | The permanent removal of a professional's name from the register, revoking their license to practice. | | Withdrawal of Qualification | The revocation of a professional's certification or license by the governing body. | | Administrative Penalties | Sanctions imposed by administrative bodies for violations of regulations. | | Client Acceptance Policy | A set of guidelines and procedures established by a firm to assess and manage the risks associated with taking on new clients. | | Risk Identification and Evaluation | The process of recognizing potential dangers or threats and assessing their likelihood and impact. | | Prevention Measures | Actions taken to stop or reduce the likelihood of undesirable events, such as fraud. | | Ignorance of Fraudulent Client | A situation where a professional is unaware of or fails to take reasonable steps to detect a client's fraudulent activities. | | Customer Due Diligence | The process of verifying the identity of clients and understanding the nature of their business activities to prevent financial crime. | | Ultimate Beneficial Owners | The natural person(s) who ultimately own or control a client and/or the person on whose behalf a transaction is conducted. | | Ongoing Monitoring | Continuous review of business relationships and transactions to ensure compliance and detect any suspicious activities. | | Internal Procedures | Policies and guidelines established within an organization to govern its operations and ensure compliance. | | Acceptance Phase | The initial stage of the client acceptance policy, where a potential new client is evaluated. | | Continuation Phase | The ongoing assessment of a client relationship to ensure continued compliance and risk management. | | Termination Phase | The process of ending a professional relationship with a client. | | Reputation | The beliefs or opinions that are generally held about someone or something. | | Workload | The amount of work to be done. | | Manpower | Human resources available for a task. | | Serious Contractual Breach | A significant violation of the terms of a contract. | | Registered Letter | A postal service that provides proof of postage and delivery. | | Follow-up | Subsequent action or development. | | Disciplinary Decisions | Rulings or judgments made by a disciplinary committee regarding professional misconduct. | | Warning | A statement or event that indicates a possible or impending danger, problem, or other unpleasant situation. | | Suspension of 8 Days | A disciplinary sanction involving a temporary ban from professional practice for a period of eight days. | | Court Costs | The expenses incurred in legal proceedings. | | Unlawful Premium Application | An illegitimate request for a financial subsidy or bonus. | | Revenue Shift | The manipulation of financial records to alter reported income. | | Fictitious Decrease | A fabricated reduction in figures. | | Reference Period | A defined timeframe used for comparison or evaluation. | | Fraudulent Simulation | The act of creating a false appearance or imitation to deceive. | | Procedure Costs | Expenses associated with legal or disciplinary proceedings. | | Legal Assessor | An official legal expert who advises a tribunal or committee. | | Compliance with Legal and Normative Framework | Adherence to all applicable laws, regulations, and professional standards. | | Retirement | The state of having left one's job and ceased to work, typically on reaching a certain age. | | Inappropriate | Not suitable or proper in the circumstances. | | Official Retirement | The formal cessation of work on reaching the statutory retirement age. | | Unrecoverable | Not able to be recovered or retrieved. | | Striking Off (Sanction) | A severe disciplinary penalty resulting in the permanent removal of a professional from their governing body's register. | | Procedure Costs (990 EUR) | Expenses incurred for disciplinary proceedings amounting to 990 Euros. | | Measures | Actions taken to achieve a particular purpose. | | Institute for Tax Advisors and Accountants (ITAA) | The professional body governing tax advisors and accountants in Belgium. | | Outsourcing of Accounting Assignments | Engaging external individuals or firms to perform accounting tasks. | | Busy Periods | Times of high workload and demand for professional services. | | Processing Invoices | The administrative task of handling and recording invoices. | | Accounting Firm | A business entity that provides accounting services. | | Guidelines on Professional Relationships | Rules and recommendations for conduct and interaction between members of professional bodies. | | IBR | Institute of Registered Auditors (predecessor or related body). | | Disciplinary Decisions Examples | Illustrative cases demonstrating the application of disciplinary sanctions for professional misconduct. | | Professional Errors | Mistakes made in the course of professional practice. | | Absence of Engagement Letter | A situation where a required formal agreement between a professional and client is missing. | | French-Speaking Disciplinary Committee | A disciplinary body for professionals in the French-speaking region. | | Company | A legal entity formed to conduct business. | | Partner | A member of a partnership. | | Legal, Regulatory, and Normative Framework | The comprehensive set of laws, rules, and standards governing professional practice. | | Processing Costs | Expenses related to the handling and execution of legal or disciplinary processes. | | Righteousness, Honesty, and Dignity | Core ethical principles that professionals must uphold. | | Flemish Inspectorate (VLAIO) | A regional agency responsible for economic, innovation, and agricultural inspection in Flanders, Belgium. | | Corona Compensation Premium | A financial aid or subsidy provided to businesses during the COVID-19 pandemic. | | Turnover Reduction | A decrease in the amount of money a company earns in a given period. | | Fictitious Turnover Decrease | A manufactured or false reduction in reported revenue. | | Systematic Invoice Date Shifting | A deliberate practice of altering invoice dates to manipulate financial reporting. | | Reference Period | A specified timeframe used as a basis for comparison. | | Intent to Simulate Turnover Decrease | The deliberate aim to create a false impression of reduced revenue. | | Suspension of One Month | A disciplinary sanction where a professional is barred from practice for a month. | | Dutch-Speaking Disciplinary Committee | A disciplinary body for professionals in the Dutch-speaking region. | | Mandatory Permanent Training | The requirement for professionals to undertake a set amount of ongoing professional development. | | Retirement Activities | Professional engagements undertaken after officially retiring from full-time work. | | Reporting to the Institute | The obligation to provide information and documentation to the professional governing body. | | Unacceptable Behavior | Actions or conduct that fall below the expected standards of a profession. | | Deletion of Qualification | The permanent removal of a professional's license or certification. |