Skip to Content
Home └Professional Ethics Module └Survey Evidence: Why Professional Ethics Matters

Professional Ethics Module

0 %

Completed

Course content

Survey Evidence: Why Professional Ethics Matters

Prev Next
Fullscreen Share
ICPAS Logo
Institute of Certified Public Accountants of Somaliland
Professional Orientation Guide
Corporate & Business Law · Taxation
CPA Somaliland Membership Orientation · Section 13

Quick Reference - Tax Rates & Key Dates

13. QUICK REFERENCE - TAX RATES & KEY DATES

Domestic Tax Rate Summary

Tax Base Tax % Admin % Stamp % Effective %
Payroll (PAYE) Gross employment income 5% - 1% 6%
Rental Income (Individual) Gross rental income 10% 2% 2.5% of (tax+admin) ~12.3%
Business Income Chargeable income 10% 2% 2.5% of (tax+admin) ~12.3%
GST Taxable consideration 5% - - 5%
Withholding (non-resident) Gross international payment 10% 2% 2.5% ~12.3%
Excise (tobacco) Value of tobacco products 50% - - 50%

Key Filing Dates Summary

Tax / Obligation Due Date
Business Income Tax return (Dec year-end) 30 April
Individual Rental Income Tax 30 April
Payroll Tax (PAYE) - monthly remittance 15th of following month
GST return and payment 21st of following month
Provisional Tax - Corporate (instalment 1) 30 June
Provisional Tax - Corporate (instalment 2) 31 December
Provisional Tax - Individual (quarterly) 31 Mar / 30 Jun / 30 Sep / 31 Dec
Objection to assessment Within 30 days of notice
Penalty interest on overdue tax 2% per month from due date
Record retention minimum period 5 years from end of year of income

Capital Allowance - Initial & Annual Rate Summary

Category Initial Allowance Annual Rate & Method
Eligible plant & machinery - Hargeisa 50% of cost (yr 1 only) Reducing balance on remaining WDV
Eligible plant & machinery - Outside Hargeisa 75% of cost (yr 1 only) Reducing balance on remaining WDV
Computers & data handling (Class 1) 50%/75% if eligible 40% reducing balance
Vehicles, construction (Class 2) None (transport vehicles excluded) 35% reducing balance
Buses ≥30 seats; heavy goods; farm/mining plant (Class 3) 50%/75% if eligible plant 30% reducing balance
Office furniture; aircraft; vessels; other (Class 4) 50%/75% if eligible 20% reducing balance
Industrial Buildings - Annual N/A 5% straight-line
Industrial Buildings - Initial 20% of qualifying cost Applied in year building first in use
Small equipment (< $5,000) 100% immediate deduction No capital allowance applies
REMINDER Transport vehicles (goods vehicles, buses, passenger cars) DO NOT qualify for the initial allowance - only for annual allowances.
ICPAS Professional Orientation Guide · For IFAC Qualified Accountants Applying for Direct Admission to CPA Somaliland Membership · 2026 Edition
Professional Ethics Module

Why Professional Ethics Matters

Survey evidence shows that professional accountants may face pressure to compromise ethical standards. Understanding this pressure helps accountants protect their judgement, their profession, and the public interest.

CCAB Ethics Survey 2021

The CCAB Ethics Survey 2021 was an anonymous informal survey of professional accountants. It was designed to take the ethical temperature of the accountancy profession in the UK and Ireland over the previous three years and as the profession emerged from the COVID-19 pandemic.

The survey received 445 completed responses and more than 300 written comments. Although it was not designed as a rigorous academic study, its findings provide useful insight into the ethical pressures faced by accountants in practice.

More than a quarter of respondents indicated that they had been put under pressure, or felt under pressure, to act in a professionally unethical way.

Key survey findings

27%
had been put under pressure, or felt under pressure, to act in a professionally unethical way.
54%
of those under pressure felt threatened in some way.
6%
reported being offered incentives such as bonuses, promotion, favourable treatment, holidays, or cash.
Source: CCAB Ethics Survey 2021, informal anonymous survey of 445 professional accountants.
Who applied the pressure?
CFO / FD / CEO / Director
28%
Line manager
27%
Client
18%
Board / Cabinet / Council
10%
Source: CCAB Ethics Survey 2021. Percentages show respondents identifying the source of pressure.
How did respondents react?
78% spoke up to prevent being put under pressure.
65% did not carry out the unethical task.
35% carried out the task either fully or partially.
Source: CCAB Ethics Survey 2021. The 35% comprises 10% who carried out the task fully and 25% who carried it out partially.

Examples of ethical pressure reported

The survey showed that ethical pressure can arise in many practical areas of accounting, finance, audit, procurement, and reporting. Common examples included:

  • Excessive optimism in budgets, business cases, cash flow forecasts, and plans.
  • Unreasonably downplaying risks in budgets, business cases, cash flow forecasts, and plans.
  • Categorising personal expenses of employees, directors, or shareholders as company expenses.
  • Getting around local policies, standing orders, financial instructions, or procurement regulations.
  • Altering audit opinions or issuing favourable reports despite weak internal controls.
  • Not obtaining sufficient appropriate audit evidence.
  • Incorrect tax treatment or manipulation of reported performance.
  • Failing to report unethical behaviour by a colleague.
Source: CCAB Ethics Survey 2021, survey findings and respondent comments.

Consequences of ethical pressure

Ethical pressure does not only affect financial statements or reports. It can also affect the accountant personally. The survey found that almost one third of respondents who faced pressure experienced anxiety, stress, or depression.

Some respondents resigned, were removed from their role, faced disciplinary processes, or suffered damage to professional relationships. This shows why ethical culture, support systems, and professional courage are important in accounting practice.

Source: CCAB Ethics Survey 2021.

Other survey evidence

69%
of finance professionals believed their organizations had experienced pressure to act unethically or illegally in the past year.
Source: Institute of Management Accountants and RSM US LLP survey, 2019.
55%
of respondents cited lack of ethics as the main challenge faced by small and medium-sized practices.
Source: IFAC Global SMP Survey, 2019.
82%
of CCAB survey respondents had read their Institute’s Code of Ethics in full or in part during the previous three years.
Source: CCAB Ethics Survey 2021.

Key message

The survey findings show that ethical pressure is real. Professional accountants need more than technical knowledge. They also need ethical awareness, professional judgement, courage, and support when facing pressure.

As you continue this course, think about how the five fundamental principles can guide your decisions when you face pressure, conflict of interest, intimidation, confidentiality concerns, or financial incentives.

References

  1. Consultative Committee of Accountancy Bodies. (2021). CCAB Ethics Survey 2021.
  2. Institute of Management Accountants and RSM US LLP. (2019). Survey on ethical pressure and compliance issues among finance professionals.
  3. International Federation of Accountants. (2019). IFAC Global SMP Survey.
  4. International Ethics Standards Board for Accountants. International Code of Ethics for Professional Accountants, including International Independence Standards.

Commenting is not enabled on this course.