Is my accountant responsible?
I am a truck driver. When I started working as such, I had to incorporate as this is what most transport companies ask their truck drivers to do. This way I worked as a self employed truck driver providing transport services. Lately I had an audit from Revenu Quebec and I was told that I was not an "active business" but a "personal services business" which placed my company in a different position. For the 4 audited years Revenu Quebec did not accept about 30 000$ expenses of my company. Now, for this amount of 30 000 not accepted, I have to pay 28 000 $ in taxes (together with the interest and the penalties). When I incorporated and during the years I worked as a truck driver I had no idea that there was a difference between "active business" and "personal services business". I hired an accountant to do my bookkeeping. I suppose he had to know how to do my tax filing legally and he had to make the difference between the business types and do my taxes accordingly. I did not hide a penny and declared ALL my incomes. The problem comes from the differentiation between businesses. I know that I am the only one responsible for my taxes. My question is : What is the responsibility of the accountant in a case like this? Thank you.
Other - Taxes - 1 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
The accountant may well have a responsibility for the penalty and interest you are required to pay. You may wish to sue him for the entire amount hoping that his errors and omissions insurance may cover both the tax and the penalties.
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