Tax Accountant Convicted of Tax Evasion

There is always someone who believes they’re smarter than everyone else and that the law doesn’t apply to them. The problem is that (aside from the fact in this case that tax evasion is illegal) there is always going to be someone smarter.

On June 1, 2015, Rodney Dennis Wigmore of Calgary, discovered that “use of his extensive knowledge of accounting and taxation” to give the impression that his business providing accounting and tax preparation services was struggling and unprofitable didn’t make it past CRA’s scrutiny.

Mr. Wigmore was fined $80,783 and sentenced to 24 months for tax evasion on convictions for evasion of personal, business and GST taxes.

As with all industries, the financial services industry has its share of bad apples, and many times, financial professionals find themselves being unfairly categorized due to the actions of the few. As financial professionals, it is our responsibility to protect the reputation of our industry.

Protecting our industry comes down to one defining factor—knowledge.

• Know Your Stuff – Nothing better protects both you and your client than your knowledge of the legislation and rules governing financial services.
• Educate Your Client – Financial and tax advice needs to come from you, not your clients’ next-door neighbour.
• Educate Yourself – The industry, legislation and regulations change constantly. Operating in 2015 with 2010 knowledge isn’t benefiting anyone.
• Know What You Don’t Know – Unique circumstances or situations arise that you may not be equipped to handle. When you accept this fact, find the expertise through your inter-advisory network for both your benefit and the benefit of your client.

• Accurate Records – Maintaining current and accurate records and documentation for both your own business and your client removes any question or interpretation years down the road when CRA comes calling.
• Know Your Rights – With client penalties and third-party penalties applying to clients and their advisors, know what your rights are and familiarize yourself with reportable transactions. Advisors are required to file form RC312 – Reportable Transaction Information Return by June 30th of the year following the transaction.

Source: CRA