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Policy Brief No. 06

Adviser fee rules in seven countries (brief)

This paper sets out research and the publisher's opinion. Factual statements are cited to their sources. It makes no allegation about any firm or person not named in a cited official record.

A short comparison of how five countries and their main professional bodies treat contingent fees for preparing research and development tax claims, drawn from statute, official guidance and published professional codes.

ResearchCreditIntegrity.org is operated by SR Tax Services LLC under the Swanson Reed brand. Swanson Reed is an R&D tax advisory firm with a commercial interest in how R&D tax advisers are paid. See our conflicts of interest statement.

Key points

  1. No statute prohibiting or capping contingent fees for preparing R&D claims was identified in any of the five countries; the United States restricts them for practitioners by Treasury regulation, within limits set by the courts.1Source 1Treasury Department, Circular No. 230, 31 CFR 10.27, Fees, paragraphs (b) and (c). https://www.ecfr.gov/current/title-31/subtitle-A/part-10/subpart-B/section-10.27 (accessed 11 October 2026).2Source 2US Court of Appeals for the District of Columbia Circuit, Loving v. Internal Revenue Service, No. 13-5061, decided 11 February 2014, slip opinion pages 2 to 3. https://media.cadc.uscourts.gov/opinions/docs/2014/02/13-5061-1479431.pdf (accessed 11 October 2026).3Source 3US District Court for the District of Columbia, Ridgely v. Lew, Civil Action No. 1:12-cv-00565 (CRC), Memorandum Opinion, 16 July 2014, pages 1 and 15. https://www.govinfo.gov/content/pkg/USCOURTS-dcd-1_12-cv-00565/pdf/USCOURTS-dcd-1_12-cv-00565-1.pdf (accessed 11 October 2026).
  2. Canada requires each paid SR&ED claim preparer's billing arrangement, rate and fee to be reported on the claim, with a $1,000 penalty for missing or wrong information.4Source 4Government of Canada, Income Tax Act, RSC 1985, c 1 (5th Supp), subsections 37(11) and 162(5.1) to (5.3). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-162.html (accessed 11 October 2026).5Source 5Canada Revenue Agency, T4088, Guide to Form T661 (T4088(E) Rev. 20), Part 9, Claim preparer information, lines 940 to 965. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4088/guide-form-t661-scientific-research-experimental-development-expenditures-claim-guide-form-t661.html (accessed 11 October 2026).
  3. The United Kingdom pays R&D tax credits to the company rather than to agents.6Source 6HM Revenue and Customs, Corporate Intangibles Research and Development Manual, CIRD81805 (updated 25 August 2026), sections on CTA09/S1142D and S1142C. https://www.gov.uk/hmrc-internal-manuals/corporate-intangibles-research-and-development-manual/cird81805 (accessed 11 October 2026).
  4. Most professional codes treat contingent fees for tax work as a threat to objectivity to be evaluated; the AICPA Code and the Ontario CPA Code prohibit them for tax returns.7Source 7ICAEW, ICAEW Code of Ethics 2026 (applies from 1 July 2026), paragraphs 330.4 A1 to 330.4 A3 and R410.9. https://www.icaew.com/-/media/corporate/files/technical/ethics/code-of-ethics/icaew-code-of-ethics-2026-revisions-highlighted.ashx (accessed 11 October 2026).8Source 8American Institute of CPAs, AICPA Code of Professional Conduct (updated for all official releases through September 2026), ET 1.510.001, paragraph .01. https://pub.aicpa.org/codeofconduct/ethicsresources/et-cod.pdf (accessed 11 October 2026).9Source 9Chartered Professional Accountants of Ontario, CPA Code of Professional Conduct, Rules 215.1 and 215.2. https://assets.cpaontario.ca/members/regulations-guidance/pdfs/CPA-Ontario-Code-of-professional-conduct.pdf (accessed 11 October 2026).
  5. Every professional code binds only its own members.8Source 8American Institute of CPAs, AICPA Code of Professional Conduct (updated for all official releases through September 2026), ET 1.510.001, paragraph .01. https://pub.aicpa.org/codeofconduct/ethicsresources/et-cod.pdf (accessed 11 October 2026).9Source 9Chartered Professional Accountants of Ontario, CPA Code of Professional Conduct, Rules 215.1 and 215.2. https://assets.cpaontario.ca/members/regulations-guidance/pdfs/CPA-Ontario-Code-of-professional-conduct.pdf (accessed 11 October 2026).

What this brief covers

A contingent fee is a fee calculated as a share of the tax benefit a claim produces, or payable only if the claim succeeds. This brief summarizes how the United States, the United Kingdom, Ireland, Canada and Singapore, and the main professional bodies in each, treat such fees for preparing research and development tax claims, as at 11 October 2026. It describes the rules only and makes no recommendation for any country.

Government rules

United States. Circular 230 section 10.27 provides that a practitioner may not charge a contingent fee for preparing returns or refund claims, with exceptions for examinations, interest and penalty claims and litigation.1Source 1Treasury Department, Circular No. 230, 31 CFR 10.27, Fees, paragraphs (b) and (c). https://www.ecfr.gov/current/title-31/subtitle-A/part-10/subpart-B/section-10.27 (accessed 11 October 2026). In 2014 the Court of Appeals for the District of Columbia Circuit held in Loving v. IRS that the IRS's authority to regulate practice before it does not extend to tax return preparers.2Source 2US Court of Appeals for the District of Columbia Circuit, Loving v. Internal Revenue Service, No. 13-5061, decided 11 February 2014, slip opinion pages 2 to 3. https://media.cadc.uscourts.gov/opinions/docs/2014/02/13-5061-1479431.pdf (accessed 11 October 2026). Applying that court's reasoning, a federal district court in Ridgely v. Lew permanently enjoined enforcement of section 10.27 for refund claims filed before an audit.10Source 10US District Court for the District of Columbia, Ridgely v. Lew, Civil Action No. 1:12-cv-00565 (CRC), Memorandum Opinion, 16 July 2014, pages 1, 9 and 14 to 15. https://www.govinfo.gov/content/pkg/USCOURTS-dcd-1_12-cv-00565/pdf/USCOURTS-dcd-1_12-cv-00565-1.pdf (accessed 17 October 2026). A 2024 proposal to treat these fees as disreputable conduct by practitioners had not been finalized.11Source 11Treasury Department and Internal Revenue Service, Regulations Governing Practice Before the Internal Revenue Service, notice of proposed rulemaking, 89 FR 104915 (26 December 2024), Explanation of Provisions part B. https://www.federalregister.gov/documents/2024/12/26/2024-29371/regulations-governing-practice-before-the-internal-revenue-service (accessed 11 October 2026).12Source 12Office of the Federal Register, Federal Register documents filed under agency docket REG-116610-20 (search result: one document, the proposed rule of 26 December 2024). https://www.federalregister.gov/api/v1/documents.json?conditions%5Bdocket_id%5D=REG-116610-20 (accessed 11 October 2026).

United Kingdom. No statutory fee rule was identified. For claims made on or after 1 April 2024, HMRC generally pays R&D tax credits only to the claimant company, and new assignments made on or after 22 November 2023 are void.6Source 6HM Revenue and Customs, Corporate Intangibles Research and Development Manual, CIRD81805 (updated 25 August 2026), sections on CTA09/S1142D and S1142C. https://www.gov.uk/hmrc-internal-manuals/corporate-intangibles-research-and-development-manual/cird81805 (accessed 11 October 2026). HMRC said the change would reduce "the financial incentive for agents to overstate claims".13Source 13HM Revenue and Customs, Approach to Research and Development tax reliefs 2023 to 2024 (published 30 October 2024), section 2.1. https://www.gov.uk/government/publications/hmrcs-approach-to-research-and-development-tax-reliefs-2023-to-2024/approach-to-research-and-development-tax-reliefs-2023-to-2024 (accessed 11 October 2026).

Ireland. No fee rule was found in Revenue's commentary on section 766C, and agents may not directly receive clients' business tax refunds.14Source 14Revenue Commissioners, Notes for Guidance, Taxes Consolidation Act 1997, Finance Act 2025 edition, Part 29, section 766C. https://www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/tca/part29.pdf (accessed 11 October 2026).15Source 15Revenue Commissioners, Tax and Duty Manual Part 37-00-04b, Guidelines for Agents or Advisors acting on behalf of taxpayers (document last reviewed September 2026), section on refunds. https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-37/37-00-04b.pdf (accessed 11 October 2026).

Canada. The Income Tax Act does not cap fees but requires "claim preparer information", including the arrangement under which the preparer accepts consideration, on the SR&ED form.4Source 4Government of Canada, Income Tax Act, RSC 1985, c 1 (5th Supp), subsections 37(11) and 162(5.1) to (5.3). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-162.html (accessed 11 October 2026). The CRA guide collects a billing arrangement code, with code 1 for a contingency fee, the rate and the fee amount.5Source 5Canada Revenue Agency, T4088, Guide to Form T661 (T4088(E) Rev. 20), Part 9, Claim preparer information, lines 940 to 965. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4088/guide-form-t661-scientific-research-experimental-development-expenditures-claim-guide-form-t661.html (accessed 11 October 2026). A person who makes, or participates in, a false statement or omission in that information is liable to a penalty of $1,000, jointly and severally with any claim preparer, who has a defence if it exercised the care of a reasonably prudent person.4Source 4Government of Canada, Income Tax Act, RSC 1985, c 1 (5th Supp), subsections 37(11) and 162(5.1) to (5.3). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-162.html (accessed 11 October 2026). The rules followed a study of contingency fees announced in the 2012 budget.16Source 16Canada Revenue Agency, Archived: Budget 2012, Scientific Research and Experimental Development Program, question 9. https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/archived-budget-2012/archived-budget-2012-scientific-research-experimental-development-program.html (accessed 11 October 2026).

Singapore. No statutory fee rule was identified, and the IRAS R&D claim form does not ask who prepared the claim or how they were paid.17Source 17Inland Revenue Authority of Singapore, Research and Development (R&D) Claim Form (YA 2019 and onwards), read in full. https://www.iras.gov.sg/docs/default-source/uploadedfiles/pdf/rnd-claim-form-(ya-2019-n-after).pdf?sfvrsn=72929970_40 (accessed 11 October 2026).

Professional codes

In most of the five countries the main rules on how an adviser may charge come from professional bodies. Several codes follow the same international text, so the wording on contingent fees is often identical from one country to the next.

Body Treatment of contingent fees for tax work
AICPA (United States) Prohibited for preparing original or amended returns and refund claims8Source 8American Institute of CPAs, AICPA Code of Professional Conduct (updated for all official releases through September 2026), ET 1.510.001, paragraph .01. https://pub.aicpa.org/codeofconduct/ethicsresources/et-cod.pdf (accessed 11 October 2026).
CPA Ontario (Canada) Prohibited for preparing income tax returns; otherwise permitted with written agreement before substantial completion9Source 9Chartered Professional Accountants of Ontario, CPA Code of Professional Conduct, Rules 215.1 and 215.2. https://assets.cpaontario.ca/members/regulations-guidance/pdfs/CPA-Ontario-Code-of-professional-conduct.pdf (accessed 11 October 2026).
CIOT and ATT (United Kingdom) Permitted with care; engagement letter should cover repayment if the benefit is lost18Source 18Chartered Institute of Taxation and Association of Taxation Technicians, Professional Rules and Practice Guidelines (effective 9 November 2018, updated 1 January 2021), paragraphs 8.2.1 to 8.2.5. https://www.att.org.uk/sites/default/files/PRPG%20%28Update%201.1.2021%29%20-%20Final.pdf (accessed 11 October 2026).
ICAEW, Chartered Accountants Ireland, ISCA A possible self-interest threat to objectivity, to be evaluated with factors and safeguards; prohibited for audits7Source 7ICAEW, ICAEW Code of Ethics 2026 (applies from 1 July 2026), paragraphs 330.4 A1 to 330.4 A3 and R410.9. https://www.icaew.com/-/media/corporate/files/technical/ethics/code-of-ethics/icaew-code-of-ethics-2026-revisions-highlighted.ashx (accessed 11 October 2026).19Source 19Chartered Accountants Ireland, Code of Ethics, Parts 1 to 4 (applying from 1 March 2020), paragraphs 330.8 A1 to 330.8 A3 and R410.10. https://www.charteredaccountants.ie/docs/default-source/technical-documents/ethics/code-of-ethics---december-2020.pdf?sfvrsn=e828ae7c_3 (accessed 11 October 2026).20Source 20Institute of Singapore Chartered Accountants, Ethics Pronouncement 100: Code of Professional Conduct and Ethics (effective 1 July 2025), paragraphs 330.4 A1 to 330.4 A3 and R410.9. https://isca.org.sg/docs/default-source/ep-100/eps-100/code-of-ethics-for-isca-ep-100-(effective-1-jul-25).pdf (accessed 11 October 2026).
Irish Tax Institute (Ireland) No specific rule on contingent fees; a commission or reward from a third party must be disclosed to the client21Source 21Irish Tax Institute, Code of Professional Conduct and Recommended Best Practice Guidelines (document headed Irish Taxation Institute; version taking effect 15 September 2015), Article 11. https://itiprod2storagegroup.blob.core.windows.net/files/Member%20Resources/ITI-Code-of-Professional-Conduct-effective-201509151.pdf (accessed 11 October 2026).
SCTP (Singapore) No specific rule on contingent fees; a commission, incentive or other advantage from a third party must be disclosed to the client22Source 22Singapore Chartered Tax Professionals, Code of Ethics and Professional Conduct (effective 1 September 2026), paragraphs 3.10 and 8.18. https://www.sctp.org.sg/Ethics-Code.pdf (accessed 11 October 2026).

What the record shows

Governments that have acted on adviser fees in R&D claims have chosen different tools: disclosure in Canada, and control of where payments go in the United Kingdom and Ireland.4Source 4Government of Canada, Income Tax Act, RSC 1985, c 1 (5th Supp), subsections 37(11) and 162(5.1) to (5.3). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-162.html (accessed 11 October 2026).6Source 6HM Revenue and Customs, Corporate Intangibles Research and Development Manual, CIRD81805 (updated 25 August 2026), sections on CTA09/S1142D and S1142C. https://www.gov.uk/hmrc-internal-manuals/corporate-intangibles-research-and-development-manual/cird81805 (accessed 11 October 2026).15Source 15Revenue Commissioners, Tax and Duty Manual Part 37-00-04b, Guidelines for Agents or Advisors acting on behalf of taxpayers (document last reviewed September 2026), section on refunds. https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-37/37-00-04b.pdf (accessed 11 October 2026). In each case the stated concern is the incentive a share of the claim creates, in the words of HMRC and the US Treasury.13Source 13HM Revenue and Customs, Approach to Research and Development tax reliefs 2023 to 2024 (published 30 October 2024), section 2.1. https://www.gov.uk/government/publications/hmrcs-approach-to-research-and-development-tax-reliefs-2023-to-2024/approach-to-research-and-development-tax-reliefs-2023-to-2024 (accessed 11 October 2026).11Source 11Treasury Department and Internal Revenue Service, Regulations Governing Practice Before the Internal Revenue Service, notice of proposed rulemaking, 89 FR 104915 (26 December 2024), Explanation of Provisions part B. https://www.federalregister.gov/documents/2024/12/26/2024-29371/regulations-governing-practice-before-the-internal-revenue-service (accessed 11 October 2026).

Professional codes are the main source of fee rules in most of the five countries, and they bind only their members.8Source 8American Institute of CPAs, AICPA Code of Professional Conduct (updated for all official releases through September 2026), ET 1.510.001, paragraph .01. https://pub.aicpa.org/codeofconduct/ethicsresources/et-cod.pdf (accessed 11 October 2026).9Source 9Chartered Professional Accountants of Ontario, CPA Code of Professional Conduct, Rules 215.1 and 215.2. https://assets.cpaontario.ca/members/regulations-guidance/pdfs/CPA-Ontario-Code-of-professional-conduct.pdf (accessed 11 October 2026). Only Canada collects the fee arrangement on the claim, so in the other four countries no official data show how R&D claim preparers are paid.5Source 5Canada Revenue Agency, T4088, Guide to Form T661 (T4088(E) Rev. 20), Part 9, Claim preparer information, lines 940 to 965. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4088/guide-form-t661-scientific-research-experimental-development-expenditures-claim-guide-form-t661.html (accessed 11 October 2026).

References

  1. Treasury Department, Circular No. 230, 31 CFR 10.27, Fees, paragraphs (b) and (c). https://www.ecfr.gov/current/title-31/subtitle-A/part-10/subpart-B/section-10.27 (accessed 11 October 2026).   Back
  2. US Court of Appeals for the District of Columbia Circuit, Loving v. Internal Revenue Service, No. 13-5061, decided 11 February 2014, slip opinion pages 2 to 3. https://media.cadc.uscourts.gov/opinions/docs/2014/02/13-5061-1479431.pdf (accessed 11 October 2026).   Back
  3. US District Court for the District of Columbia, Ridgely v. Lew, Civil Action No. 1:12-cv-00565 (CRC), Memorandum Opinion, 16 July 2014, pages 1 and 15. https://www.govinfo.gov/content/pkg/USCOURTS-dcd-1_12-cv-00565/pdf/USCOURTS-dcd-1_12-cv-00565-1.pdf (accessed 11 October 2026).  Back
  4. Government of Canada, Income Tax Act, RSC 1985, c 1 (5th Supp), subsections 37(11) and 162(5.1) to (5.3). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-162.html (accessed 11 October 2026).     Back
  5. Canada Revenue Agency, T4088, Guide to Form T661 (T4088(E) Rev. 20), Part 9, Claim preparer information, lines 940 to 965. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4088/guide-form-t661-scientific-research-experimental-development-expenditures-claim-guide-form-t661.html (accessed 11 October 2026).    Back
  6. HM Revenue and Customs, Corporate Intangibles Research and Development Manual, CIRD81805 (updated 25 August 2026), sections on CTA09/S1142D and S1142C. https://www.gov.uk/hmrc-internal-manuals/corporate-intangibles-research-and-development-manual/cird81805 (accessed 11 October 2026).    Back
  7. ICAEW, ICAEW Code of Ethics 2026 (applies from 1 July 2026), paragraphs 330.4 A1 to 330.4 A3 and R410.9. https://www.icaew.com/-/media/corporate/files/technical/ethics/code-of-ethics/icaew-code-of-ethics-2026-revisions-highlighted.ashx (accessed 11 October 2026).   Back
  8. American Institute of CPAs, AICPA Code of Professional Conduct (updated for all official releases through September 2026), ET 1.510.001, paragraph .01. https://pub.aicpa.org/codeofconduct/ethicsresources/et-cod.pdf (accessed 11 October 2026).     Back
  9. Chartered Professional Accountants of Ontario, CPA Code of Professional Conduct, Rules 215.1 and 215.2. https://assets.cpaontario.ca/members/regulations-guidance/pdfs/CPA-Ontario-Code-of-professional-conduct.pdf (accessed 11 October 2026).     Back
  10. US District Court for the District of Columbia, Ridgely v. Lew, Civil Action No. 1:12-cv-00565 (CRC), Memorandum Opinion, 16 July 2014, pages 1, 9 and 14 to 15. https://www.govinfo.gov/content/pkg/USCOURTS-dcd-1_12-cv-00565/pdf/USCOURTS-dcd-1_12-cv-00565-1.pdf (accessed 17 October 2026).  Back
  11. Treasury Department and Internal Revenue Service, Regulations Governing Practice Before the Internal Revenue Service, notice of proposed rulemaking, 89 FR 104915 (26 December 2024), Explanation of Provisions part B. https://www.federalregister.gov/documents/2024/12/26/2024-29371/regulations-governing-practice-before-the-internal-revenue-service (accessed 11 October 2026).   Back
  12. Office of the Federal Register, Federal Register documents filed under agency docket REG-116610-20 (search result: one document, the proposed rule of 26 December 2024). https://www.federalregister.gov/api/v1/documents.json?conditions%5Bdocket_id%5D=REG-116610-20 (accessed 11 October 2026).  Back
  13. HM Revenue and Customs, Approach to Research and Development tax reliefs 2023 to 2024 (published 30 October 2024), section 2.1. https://www.gov.uk/government/publications/hmrcs-approach-to-research-and-development-tax-reliefs-2023-to-2024/approach-to-research-and-development-tax-reliefs-2023-to-2024 (accessed 11 October 2026).   Back
  14. Revenue Commissioners, Notes for Guidance, Taxes Consolidation Act 1997, Finance Act 2025 edition, Part 29, section 766C. https://www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/tca/part29.pdf (accessed 11 October 2026).  Back
  15. Revenue Commissioners, Tax and Duty Manual Part 37-00-04b, Guidelines for Agents or Advisors acting on behalf of taxpayers (document last reviewed September 2026), section on refunds. https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-37/37-00-04b.pdf (accessed 11 October 2026).   Back
  16. Canada Revenue Agency, Archived: Budget 2012, Scientific Research and Experimental Development Program, question 9. https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/archived-budget-2012/archived-budget-2012-scientific-research-experimental-development-program.html (accessed 11 October 2026).  Back
  17. Inland Revenue Authority of Singapore, Research and Development (R&D) Claim Form (YA 2019 and onwards), read in full. https://www.iras.gov.sg/docs/default-source/uploadedfiles/pdf/rnd-claim-form-(ya-2019-n-after).pdf?sfvrsn=72929970_40 (accessed 11 October 2026).  Back
  18. Chartered Institute of Taxation and Association of Taxation Technicians, Professional Rules and Practice Guidelines (effective 9 November 2018, updated 1 January 2021), paragraphs 8.2.1 to 8.2.5. https://www.att.org.uk/sites/default/files/PRPG%20%28Update%201.1.2021%29%20-%20Final.pdf (accessed 11 October 2026).  Back
  19. Chartered Accountants Ireland, Code of Ethics, Parts 1 to 4 (applying from 1 March 2020), paragraphs 330.8 A1 to 330.8 A3 and R410.10. https://www.charteredaccountants.ie/docs/default-source/technical-documents/ethics/code-of-ethics---december-2020.pdf?sfvrsn=e828ae7c_3 (accessed 11 October 2026).  Back
  20. Institute of Singapore Chartered Accountants, Ethics Pronouncement 100: Code of Professional Conduct and Ethics (effective 1 July 2025), paragraphs 330.4 A1 to 330.4 A3 and R410.9. https://isca.org.sg/docs/default-source/ep-100/eps-100/code-of-ethics-for-isca-ep-100-(effective-1-jul-25).pdf (accessed 11 October 2026).  Back
  21. Irish Tax Institute, Code of Professional Conduct and Recommended Best Practice Guidelines (document headed Irish Taxation Institute; version taking effect 15 September 2015), Article 11. https://itiprod2storagegroup.blob.core.windows.net/files/Member%20Resources/ITI-Code-of-Professional-Conduct-effective-201509151.pdf (accessed 11 October 2026).  Back
  22. Singapore Chartered Tax Professionals, Code of Ethics and Professional Conduct (effective 1 September 2026), paragraphs 3.10 and 8.18. https://www.sctp.org.sg/Ethics-Code.pdf (accessed 11 October 2026).  Back