The Member issued a T5 information return (Statement of Investment Income) to the ex-spouse of a divorcing client regarding a loan (the “Loan”) the ex-spouse had made to a company controlled by the Respondent’s client (the “Individual”). The Member did not sufficiently advise their client concerning the accounting and tax treatment of accrued interest on the Loan, including drawing the client’s attention to required statutory filing deadlines. The Member did not appropriately agree to their role and responsibilities and scope of work with the client through an engagement letter.
The Investigation Committee determined the Member contravened the CPABC Code of Professional Conduct as follows,
201.1 - Maintenance of the good reputation of the profession
202.1 - Due care
The Committee recommended the Member:
- accept a reprimand,
- pay expenses of $2,807; and
- attend and successfully complete the CPABC course Income Tax – Everyday Issues for General Practitioners