A taxpayer tells their tax preparer they only earned employment income in the year. The preparer reports the employment income as the only source of income when completing the tax return. However, the preparer had advised the taxpayer on the tax treatment on the sale of an investment by the taxpayer in 2022. Who, if anyone, would be potentially subject to penalties under the Income Tax Act (ITA)?

Answer rating: 100% (QA)

In this scenario potential penalties under the Income Tax Act ITA could apply to both the taxpayer a... View the full answer