Canadian Tax Research & Professional Responsibility

On a 2024 terminal T1 for a deceased taxpayer, the return was filed using all slips then on hand. Two weeks later the executor received a RRIF slip mailed late by the issuer, forwarded it immediately, and asked for an amendment. There is no prior pattern of omitted slips or false intake responses. What should be concluded before escalating the matter as a serious penalty file?

Owen Price wants to claim a large capital loss on private-company shares sold in the year. The sale proceeds are documented, but he cannot produce subscription records, purchase agreements, or evidence of later capital contributions, and the only adjusted cost base figure comes from memory. What prevents sign-off on the loss as drafted?

Marc Gauthier reviews a 2023 T2 draft where C$84,630 of shareholder vacation costs were booked to travel, similar claims had been denied in a prior year, and the owner told staff to “leave it in unless CRA forces us out.” What should be evaluated before this is framed as only an interest issue?

Sophie Verret sold a property she says was fully her principal residence. The file shows recurring short-term rental income for one unit over several summers, and a prior preparer claimed capital cost allowance on that unit in two years. The client says the rental use was minor and wants the full exemption claimed. What prevents sign-off as drafted?

Pascale Reid is reviewing a correction file for omitted subcontractor income.

• The client first said the deposits were loans.
• After bank records were requested, the client said they were cash jobs handled “off the books.”
• The prior preparer’s organizer for two years asked whether all business receipts were deposited and reported, and the client answered “Yes.”

Which pattern most strongly blocks a conclusion of ordinary-error-only exposure?