EX AutoSave BRE Document Home Insert Draw Design Layout References Mailings Review View Tell me IEEE 1 Zagumns... 10 comment Pete - A A A APA AGD AACD ABCDE DE AaBb C (Tax Preparer's Penalties) For each of the following independent cases, indicate whether you believe any penalty would be assessed under ITA 163.2 on any of the parties involved. Explain your conclusion. Case 1 In preparing a tax return for one of his established clients, an accountant relies on the financial statements that another accountant has prepared for the client's business income. Nothing in these statements seemed unreasonable. On audit, the CRA finds that the business income financial statements prepared by the other accountant contained material misrepresentations. Case 2 An accountant is asked to prepare tax return for a new client. The accountant had no previous acquaintance with the individual The client provides statements, prepared using the appropriate tax figures, showing a net business income of $45,000. He has no other income. He indicates that during the current year, he made a $32,000 contribution to a registered Canadian charity, but has lost the receipt and has requested a duplicate. As it is now April 29, in order to avoid a late filing penalty, the accountant e-files the tax return, claiming a tax credit for the contribution without seeing the receipt. 792 words English Canada EX AutoSave BRE Document Home Insert Draw Design Layout References Mailings Review View Tell me IEEE 1 Zagumns... 10 comment Pete - A A A APA AGD AACD ABCDE DE AaBb C (Tax Preparer's Penalties) For each of the following independent cases, indicate whether you believe any penalty would be assessed under ITA 163.2 on any of the parties involved. Explain your conclusion. Case 1 In preparing a tax return for one of his established clients, an accountant relies on the financial statements that another accountant has prepared for the client's business income. Nothing in these statements seemed unreasonable. On audit, the CRA finds that the business income financial statements prepared by the other accountant contained material misrepresentations. Case 2 An accountant is asked to prepare tax return for a new client. The accountant had no previous acquaintance with the individual The client provides statements, prepared using the appropriate tax figures, showing a net business income of $45,000. He has no other income. He indicates that during the current year, he made a $32,000 contribution to a registered Canadian charity, but has lost the receipt and has requested a duplicate. As it is now April 29, in order to avoid a late filing penalty, the accountant e-files the tax return, claiming a tax credit for the contribution without seeing the receipt. 792 words English Canada
