There are several ethical difficulties that could arise from this business arrangement, including whether Steven has a conflict of interest and whether it would be preferable for him to discuss tax advice with the clients himself rather than refer their cases to another consultant. In this instance, however, Steven has violated the ethical responsibilities of a professional accountant because it demonstrates that Steven lacks professionalism in his work and is simply interested in gaining financial advantage.

Step-by-step explanation

• Despite the fact that receiving money from a third party may be ethically correct, Steven should communicate this information to his clients and make them aware of his goals. The failure to do so would be regarded unethical due to the fact that he was left out of the $2,000,000 commission.
• Steven may be faced with a conflict of interest in this business scenario, which could put him in a position where he is forced to make decisions that are not in the best interests of his customer. He should inform this client of any potential financial gains that may result from his recommendation. The choices for sustaining a professional relationship should be discussed with the client in light of the wishes and objectives of the client.
• For example, in this situation, Steven should refrain from making recommendations to his client until he has made reasonable steps to consider the best interests of the third party who is giving him with a commission. He should consider receiving a second view from his firm's compliance team before making any recommendations to any of his clients, despite the fact that doing so may be challenging.