Volunteering to Provide Tax Services? A few matters to keep in mind

From CPABC’s Advisory Services Team

Each year, many CPAs volunteer to prepare personal tax returns for low-income taxpayers in their communities. Providing this much-valued volunteer service gives CPABC members an opportunity to support their communities by helping those truly in need of this assistance, including social assistance recipients, newcomers to Canada, seniors, and students.

Recognizing that many of you volunteer in this capacity, we wanted to draw your attention to a few matters that must be kept in mind when providing such services, including a new exemption requirement.

Exemption from licensing

CPABC has implemented a policy that enables volunteering members to apply for exemption from the licensure process where their primary occupation is not in public practice, and where they provide these tax services to the public on an incidental basis only. For more information and to apply for the exemption, go to bccpa.ca/volunteer-tax-services.

Professional liability insurance

Because members authorized to provide volunteer tax services assistance are exempt from licensure, they are not subject to professional liability insurance requirements. However, to ensure the protection of the public, CPABC recently made arrangements for a blanket policy with AICA Services Inc. For more information and to register for this coverage, go to bccpa.ca/volunteer-tax-services.

Professional competence

It’s important to remember that volunteer work is regulated under the CPABC Code of Professional Conduct. As Rule 203 of the Code stipulates: “A member shall sustain professional competence by keeping informed of, and complying with, developments in professional standards in all functions in which the member provides professional services or is relied upon because of the member’s calling.”[2]

Therefore, before undertaking the preparation of tax returns—even at a volunteer tax clinic—a member must assess their own professional competence. If, in doing so, they determine that additional training is needed, they should consider taking a tax update course through CPABC’s Professional Development Program, a course held by one of the local CPABC chapters, or online training offered by the Canada Revenue Agency (CRA) through its Community Volunteer Income Tax Program, as described below.

Community Volunteer Income Tax Program

Many community groups that offer free tax clinics do so in collaboration with the CRA, through its Community Volunteer Income Tax Program (CVITP). Under the CVITP, community groups host free tax-preparation clinics and arrange for volunteers to prepare income tax and benefit returns for eligible individuals, while the CRA provides co-ordinators to guide in the program’s delivery. The CRA also offers training and tax software for CVITP volunteers. To register as a CVITP volunteer or to get more information about the program, go to www.canada.ca/en/revenue-agency/services/tax/individuals/community-volunteer-income-tax-program/lend-a-hand-individuals.html or call 1-800-959-8281.

Note: The CRA has advised that, effective 2016, volunteers who file tax returns electronically must get individual EFILE certification, and that CPA members are exempted from undergoing a police records check provided the member advises CRA by appending their designation in the “last name” field of the online application form or by notifying the CRA coordinator.

Contact us

Volunteering to provide tax services can be a rewarding experience—one that enables members to give back to the community, gain new skills and/or improve existing ones, and do work that is needed and appreciated. CPABC encourages members to get involved, noting the new exemption policy.

If you have any questions about applying to volunteer in this capacity, please contact CPABC’s advisory services department at 604-872-7222 or email us at professionaladvisory@bccpa.ca.

Footnotes

1. See the definitions section of the CPABC bylaws, available on the bccpa.ca website under the Members tab—click on “Regulatory” and choose “CPABC – Act, Bylaws & Rules.”
2. See Rule 203 of the CPABC Code of Professional Conduct, available on the bccpa.ca website under the Members tab—click on “Regulatory” and choose “CPABC – Act, Bylaws & Rules.”