Genesa Chartered Professional Accountants Corp (the “Firm”) was engaged to prepare tax returns for an individual and a corporation (the “clients”). The Firm made errors in the preparation of the engagement by:
- a. Failing to adequately document the work performed by the Firm related to a transfer of property under section 85(1) of the Income Tax Act (the “tax transactions”);
- Failing to adequately explain to the clients the purpose of the tax transactions;
- Failing to properly file with the Canada Revenue Agency documentation concerning the tax transactions;
- Failing to adequately supervise the work performed; and
- Billing the clients unfairly when the Firm billed for related work done approximately five years later.
The Investigation Committee determined that the Firm contravened the following Rules of the CPABC Code of Professional Conduct:
201.1 - Maintenance of the good reputation of the profession
202.1 - Integrity and due care
203 - Professional competence
214 - Fee quotations and billings
The Investigation Committee recommended that the Firm:
- accept a reprimand;
- pay a fine of $15,000;
- pay investigation expenses of $4,432; and
- accept the publication of a notice of this Determination and Recommendation which identifies the Firm.