The member prepared T1 income tax returns for clients. The member:
- caused the tax returns of the clients to be filed late, which consequently incurred late penalties from the Canada Revenue Agency;
- did not communicate with the clients on a timely basis;
- provided inappropriate tax advice to the clients;
- did not make a financial settlement with his clients, as he had agreed to do; and
- operated a practice under a name that was misleading, because the member is a sole practitioner.
The Investigation Committee determined that the member contravened the following CPABC Rules of Professional Conduct:
- 201.1 - Maintenance of the good reputation of the profession
- 202.1 - Integrity and due care
- 203 - Professional competence
- 205(a) - False or misleading documents
- 401(a) - Practice names
The Committee recommended that the member:
- accept a reprimand;
- pay a fine of $8,000;
- pay expenses of $3,032 plus GST of $151.60;
- agree to the publication of this Determination and Recommendation in the Whistler Question and on the CPABC website;
- personally attend and successfully complete by the next available date the in-person version of the course Income Tax Planning Refresher for Personal Tax; and
- at his expense, enters into an arrangement with a senior member of the profession (the “Mentor”) who is acceptable to CPABC’s Director of Professional Conduct, in which the Mentor will have periodic mentoring discussions with the member to promote better understanding by the member of applicable professional and ethical standards. This arrangement will last for no less than two years, and must involve at least eight meetings with the Mentor which must be held before December 31, 2019.At the outset of the arrangement, the member must provide the Mentor with a copy of this Determination and Recommendation, and written notification to the CPABC’s Director of Ethics that he has done so.