You are working for a firm of professional accountants as a tax adviser. Linda Jones has contacted you for tax advice. Linda is the CEO of JJ Ltd and both Linda and JJ Ltd are clients of your firm. Linda has told you that JJ Ltd owns a holiday property in Spain which the employees of JJ Ltd use for holidays free of charge. She has suggested to you that because the property is in Spain, HMRC will not find out about it and therefore she does not need to tell them about the free holidays she has given to her employees. Linda has told you that she does not want to declare the use of the property to HMRC by her employees because that will result in additional tax payments to HMRC. She has offered to let you and your friends use the property for a holiday if you do not inform HMRC. REQUIRED a) Explain the distinction between tax planning, aggressive tax avoidance and tax evasion. Give appropriate examples. b) Identify the ethical principles and threats in the above scenario. Set out the actions you and your firm should undertake.