2. Outcome of a Disciplinary Tribunal regarding allegations against Mr Nicholas Cushnahan

Finding and order

The Disciplinary Tribunal finds that Mr N Cushnahan, a member of the Institute whilst a partner in the practice of Houlihan Cushnahan & Co., with an address in Co Dublin did act in breach of the Institute's Code of Ethics for Members (2006-14): Fundamental Principles: (c): Professional Competence and Due Care and (e): Professional Behaviour in that he failed to:

1. ensure that adequate documentary evidence existed to support the charges and allowances included in a client's annual accounts and adjusted accounts from which the client's Income Tax returns were prepared for the years 2007, 2008, 2010, 2011, 2012 and 2013;
2. ensure that a business structure, namely the incorporation of a medical doctor’s private practice in 2009, which he advised for a client was planned, implemented and maintained in an adequate manner so as to achieve its purpose;
3. demonstrate that he advised a client in writing:
   1. of the potential risks associated with that client's tax affairs for the years 2009 – 2013 and the options available;
   2. ii.of the methodology being employed by him on that client's behalf and obtain the client's written approval to proceed;

1. provide appropriate VAT advice to a medical client in relation to registration for VAT; and
2. adequately co-operate with the Revenue on behalf of a client in respect of a Revenue audit;

and is accordingly liable to disciplinary action under the Institute’s Disciplinary Bye-Laws.

The Disciplinary Tribunal finds the Formal Allegation proven and makes an Order as to Sanction that the member be subject to a severe reprimand, a fine of €15,000 and a contribution to costs in the amount of €30,000.

Background and outline of disciplinary matter

The member failed to meet the expected ethical standards of Professional Competence and Due Care and Professional Behaviour in respect of the provision of services to a client in connection with the incorporation of a doctor’s private medical practice.

This Disciplinary matter was concluded in accordance with the settlement provisions set out in Chartered Accountants Ireland’s Disciplinary Regulations, the proposed terms of settlement having been approved by the members of the Disciplinary Tribunal on 21 April 2023.

Identification of appropriate orders 

Recognising the benefits of resolution through the settlement process, the Disciplinary Tribunal considered the findings and orders made appropriate having regard to the objectives of the Disciplinary Bye-Laws, the applicable guidelines on sanctioning and the particular facts and circumstances of the matter before it.

Reference: Donnchadh O'Neill, Gibney Communications

Ph: 01 6610 402