Question 4 (10 marks)

You are a tax advisor working in an accounting practise.

You have recently come across an internet business selling celebration cakes. On further investigation you discover that the owner of this business is one of your clients, Sally Baker. You have submitted her tax return for 2021/22, signed by Sally, but she made no mention of having any trading income.

Required:

Write notes in preparation for your meeting with Sally, discussing the ethical and professional issues raised and showing how you would advise her.