Tuesday, 30 September 2014

Toronto Tax Lawyer Under Investigation by the Law Society of Upper Canada


The Toronto Star recently reported on a Toronto tax lawyer who is being investigated by the Law Society of Upper Canada. It is alleged that DioGuardi took money from six clients before doing “any or very little” work, failed to provide legal services “to the standard of a competent lawyer” and, in one case, did not file income tax returns for a client “in a timely manner.” The law society alleges DioGuardi “failed to act with integrity” by having the six clients sign retainer agreements that benefited his firm, DioGuardi Tax Law, “to the potential detriment of the clients.” You can read the full article here http://www.thestar.com/news/investigations/2014/05/21/prominent_tax_lawyer_accused_of_cheating_clients.html

DioGuardi have indicated that they are fighting these allegations. 
It appears to us that DioGuardi was trying to prevent Canada Revenue Agency from seizing retainers they held to work on the cases.  The strategy he used seems to have run afoul of the Law Society of Upper Canada interpretation of how lawyers are required to operate.  DioGaurdi’s argument has some logic to it but surely it is impossible to have your cake and eat it too?  That is, claim to provide special layer protection and then not follow your own society’s governing rules (which are set up to protect clients of law firms)?
Is this more evidence that when dealing with tax problems (which can be scary enough), lawyers are not automatically the best solution. 
Don’t get us wrong. We refer people to good lawyers.  They are excellent in court and making legal arguments.  But only when that particular weapon is needed in your situation.
For more about your options when dealing with a tax problem please call Tax Solutions Canada today at 1-888-868-1400.

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