The Firm prepared corporate income tax records for a client. The engagement letters did not clearly outline all of the services to be performed and the services were not formally agreed to by the client and the Firm. The client believed the Firm would complete GST and PST returns, which the Firm did not do, causing the client to be seriously delinquent in their compliance with the relevant taxation authorities. The Firm also did not retain documentation of its discussions with the client regarding the scope of services to be provided.
The Investigation Committee determined the Firm contravened the CPABC Code of Professional Conduct as follows:
201.1 – Maintenance of the good reputation of the profession
202.1 – Due care
206.1 – Compliance with professional standards
218 – Retention of documentation and working papers
The Committee recommended the Firm:
- Accept a reprimand;
- Pay a fine of $1000; and
- Pay partial expenses of $4000.