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The Supreme Court of Canada ruled that the 3rd party tax advisor penalties imposed under s. 163.2 of the Income Tax Act on tax planners engaged in “culpable conduct” are not criminal in nature and do not benefit from protections under s. 11 of the Canadian Charter of Rights and Freedoms. These penalties are applicable to accountants and other professional advisors including Canadian income tax lawyers who provide Canadian income tax advice to taxpayers. In the case of Guindon v. The Queen 2015 SCC 41 the Supreme Court of Canada ruled that lawyer Julie Guindon was assessed penalties under s. 163.2(4) of the Canadian Income Tax Act totaling $546,747 in respect of false statements made by her in donation receipts issued by her on behalf of a charity which, it was alleged, she knew or would reasonably be expected to have known could be used by Canadian taxpayers to claim an unwarranted income tax credit as part of a tax shelter. The court upheld the penalties finding that the penalty provision was administrative in nature.


"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."

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Advisor Penalties Not Criminal
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