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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.
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 4 In preparing a tax return for a new client, an accountant uses the client's accounting statements to calculate the client's net business income. As part of this engagement, the accountant reviews both the expense and revenue information that has been provided to him by the new client. The expenses seem to be related to the type of business of the client and the revenue and expense figures contained in the accounting statements seem reasonable. Given this, the accountant files the required tax return. When the client is audited, the CRA finds a large proportion of the expenses claimed cannot be substantiated by adequate documentation and may not have been incurred. Furthermore, it appears that the client has a substantial amount of unreported revenues
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