Code of Ethics)
At a hearing held on the 9th day of December 2003, at which the member was not present, the tribunal recorded that John Gaustad Cornes, chartered accountant of Rotorua, pleaded guilty to the following charges and particulars.
THAT in terms of the Institute of Chartered Accountants of New Zealand Act 1996 and the Rules made thereunder, and in particular Rule 21.30, the member has been guilty of:
? conduct unbecoming an accountant;
? negligence and/or incompetence in a professional capacity, and that this has been of such a degree as to bring the profession into disrepute;
? breaching the Rules (21.3 (d)) and Code of Ethics (1995) (FP1, FP3, FP5, EP14, EP15 and EP16) of the institute.
? In the course of acting as a tax agent for a client, the member has:
(a) incorrectly claimed mortgage interest in relation to a rental property owned by a trust against the client's personal income in his tax return;
(b) allocated 100% of the partnership clawback solely to his wife;
(c) failed to keep adequate records to support the money lent to the trust from the client;
(d) failed to keep minutes for the trust, and in particular records of money disbursed to the client;
(e) failed to attend the final determination pursuant to Rule 21.3 (d) as requested by the professional conduct committee.
The tribunal found the member guilty as charged and the particulars proven.
Orders of the Tribunal
(a) Pursuant to Rule 21.31 (a) of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that the name of John Gaustad Cornes be removed from the institute's Register.
(b) Pursuant to Rule 21.33 of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal ordered that John Gaustad Cornes pay to the institute the sum of $2,550.42 (inclusive of G.S.T.) in respect of the costs and expenses of the hearing before the disciplinary tribunal and the investigation by the professional conduct committee.
In accordance with Rule 21.35 of the Rules of the Institute of Chartered Accountants of New Zealand, the disciplinary tribunal directed that the decision be published in the Rotorua Daily Post, the New Zealand Gazette and the Chartered Accountants Journal of New Zealand with mention of the member's current name and locality.
In reaching its decision, the tribunal considered that the member's performance of his professional duties had been inadequate and also considered the member's non appearance before the professional conduct committee. Bearing in mind these factors and the member's expressed wish to resign, the tribunal ordered that the member's name be removed from the Register of Members.
Right of Appeal
Pursuant to Rule 21.41 of the Rules of the Institute of Chartered Accountants of New Zealand, which were in force at the time of the original notice of complaint, the member may, not later than 14 days after the notification of this tribunal to the member of the exercise of its powers, appeal in writing to the appeals council of the institute against the decision.
No decision, other than the direction as to publicity, shall take effect while the member remains entitled to appeal or while any such appeal by the member awaits determination by the appeals council.
Dated this 19th day of December 2003.
R. J. O. HOARE, (Acting) Chairman, Disciplinary Tribunal.