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Disciplinary law: sales tax and goods and services tax

In a decision rendered in February 2013, the Ordre des comptables professionels agrees du Québec’s disciplinary council decided that the legislative and administrative rules concerning the Québec sales tax and the federal goods and services tax are at the very heart of the accounting profession and must therefore, be properly understood and applied by the members of the profession  (Maurer, ès qualités de syndic adjoint de l’Ordre des comptables professionnels agrees du Québec v. Désilets, 2013 CanLII 3348 (QC CPA)).

THE FACTS           

The syndic of l’Ordre des comptables professionnels agréés du Québec lodged a disciplinary complaint against a chartered professional accountant for having failed to file a notice of objection following a notice of assessment issued by Québec’s deputy minister of revenue, who acting on behalf of the Commissioner of the Canada Revenue Agency, claimed 17 500$ from his clients in payment of GST, interest and penalties. More precisely, the accountant was accused of having failed to carry out his mandate with all necessary care.

The chartered professional accountant pled guilty to the count described above, but chose to contest the $3 000 fine sought by the syndic before the Disciplinary council.

THE DISCIPLIANARY COUNCIL’S DECISION

After having considered the arguments invoked by both parties, the Ordre des comptables professionnels agrees du Québec’s disciplinary council decides that a 1 000$ fine is the appropriate sanction in the circumstances and draws the following conclusions :

1.    Even if, in Québec, the deputy minister of revenue administers not only the provincial sales tax, but also the federal goods and services tax on behalf of the Commissioner of the Canada Revenue Agency, an opposition filed against the deputy minister’s notice of assessment concerning the sales tax will not be automatically extended to the goods and services tax.

2.    According to the Disciplinary council, chartered professional accountants have no excuse to not understand the the legislative and administrative machinery in relation to the provincial sales tax and the federal tax on goods and services. 

3.    The rules on the sales tax and the goods and services tax are at the very heart of the accounting profession.

4.    A chartered professional accountant who does not have the necessary expertise in regards to tax must not practice in this field.

THE LESSONS TO BE LEARNED

1.    Chartered professional accountants are professionals who must have a specific expertise in tax and the process that must be followed in order to contest a notice of assessment.

2.    All chartered professional accountants who work in the specific field of tax should understand the consequences of not having followed the legislation applicable to this field Dubé Légal inc., Montréal disciplinary law lawyers.