Description: In what might be called an ethics survey of Canadian tax preparers, the Canada Revenue Agency has some surprising results. While about 60% do feel failing to report cash income is a serious issue, about half of those preparers don’t see much wrong about a charity giving an inflated tax receipt. Professor Ian Lee from Carleton University in Ottawa questions the findings though, pointing to the relatively small sample size. Further, he believes the professional ethics process of Ontario’s CPAs would prevent most of its members from cheating in preparing returns.
Date: January 29 , 2019
1) What did you find to be the most interesting result from this survey?
2) Try doing your own in-class survey of students’ attitudes using the five bullet points that tell us the survey results. For example, question one, using the first bullet could be “How do you feel about someone receiving cash for work performed and not declaring the income?”
3) The Ottawa Citizen article tells us “only 44 per cent of those polled agreed with the statement that ‘taxes help the government do worthwhile things.’” How might this belief influence a tax practitioner’s view on fraud? (Hint: Check out the fraud triangle in Wiley’s Auditing: A Practical Approach, for a possible clue.)