Mr. Barry W. Castles - July 25, 2013

Mr. Barry W. Castles - July 25, 2013

Disciplinary Summary 


July 25, 2013

Complaint

CGA-BC initiated an investigation into Mr. Barry W. Castles of Victoria, BC, now a former member, concerning his involvement with the company, Columbo Tax Accountants Corp.

Decision

The Discipline Committee found that Mr. Castles was in breach of CGA-BC’s Code of Ethical Principles and Rules of Conduct in effect from October 4, 2003 as follows:

Rules R509(a) – Advertising and Other Forms of Solicitation; and R509.1 – Misleading Name of Firm or Style of Practice because:

  • Mr. Castles was the Director, President and Secretary of Columbo Tax Accountants Corp. from the time of the Company naming on October 23, 2003 until it was dissolved for failure to file on March 9, 2009.  
  • A second corporation with exactly the same name was incorporated by Mr. Castles on August 3, 2010.  Mr. Castles was the only Director of the company.  
  • The firm name including “Tax Accountants” creates the impression the company has tax accountants and as Mr. Castles, the Company Director, has stated it does not and has never employed any professional accountants other than himself. 
  • The Company had a telephone number/listing as Columbo Tax Accountants until May 2010. 

The Discipline Committee found that Mr. Castles was not in breach of CGA-BC’s Code of Ethical Principles and Rules of Conduct in effect from September 18, 2010 as follows:

Rules R102 – Unlawful Activity; and R610 – Requirement to Reply in Writing due to insufficient evidence.

The Discipline Committee found that Mr. Castles was in breach of CGA-BC’s Code of Ethical Principles and Rules of Conduct in effect from September 18, 2010 as follows:

4th Ethical Principle – Deceptive Information; and R601 – Compliance because:

  • Mr. Castles knew the Company was named “Tax Accountants”; 
  • He stated he was the only professional accountant associated with the Company; 
  • He gave false or misleading statements, and refused to answer CGA-BC queries related to the nature of the revenues of the Company; 
  • He submitted three retired status declarations to the Association despite being ineligible for retired status. 

R517 – Registration; R518 – Practice Review Requirements; R519 – Professional Liability Insurance because:

  • Mr. Castles de-registered from public practice July 31, 2003; 
  • He admitted that the Company had “public practice” revenue; 
  • He was the only Director and Officer of “Columbo Tax Accountants Corp.” holding the positions of President and Secretary; 
  • He stated the company provided general advice, etc. in the tax service area; 
  • He stated that the majority of the revenue was not related to the practice of public accounting, but refused to provide any information as to the nature of the majority of the Company’s revenue on the basis that “the Shareholder deemed it to be confidential”.  Under the BC Business Corporations Act a shareholder has no such right, it being the obligation of the Director(s) to manage the affairs of the company; 
  • The T2125, Statement of Business or Professional Activities, included with the copy of his 2010 personal tax return identifies the firm preparing the return to be “Columbo Tax Accountants Corp.”; and 
  • He provided management services to the Company as confirmed by his 2010 and 2011 tax returns. 

Discipline Order

  • Suspended for 1 year from the date of this decision; 
  • fined the amount of $10,000; 
  • ordered to pay full costs of $6,423.25; 
  • required to improve his conduct and competence by:
    • completing the full day, in-person ethics course entitled The Essence of Professionalism: Ethics, Rules and Standards for New CGA’s; 
    • change his membership status to Regular and comply with all Continuing Professional Development (“CPD”) requirements or apply for resignation; and 
    • registering in public practice immediately if he wishes to continue offering/providing public accounting services as a Member, complying with all of the public practice policies in effect at the time including taking all the required courses with no exemptions. 

Consequential Order

As the Discipline Committee order was not complied with, Mr. Castles is expelled from membership.