1. 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:

1. failed to 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;
2. failed to demonstrate that he had advised the client in writing of the costs, risk and benefits of the structure as these changed during the period of the member's professional services and obtained the client's written approval to continue;
3. made adjustments to accounts information included in a client's Form11 tax return, calculated the add-backs required for a client's Income Tax returns and included some rental income in a client's Income Tax Returns in a manner that did not withstand a Revenue audit;
4. failed to advise a client of the documentary evidence required regarding the payment of a salary to a family member and account correctly for a client's family members' salaries; and
5. failed to carry out certain payroll services for family members for one year even though he had been paid for this service; and

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 €10,000 and a contribution to costs in the amount of €20,000.

This Order took effect from 1 May 2023.

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 1 May 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