Provincial CPA rules on contingent fees (brief) | Research Credit Integrity Alliance

Key points

The provincial CPA codes we opened share a Rule 215 that bars contingent fees for assurance work requiring independence, compilation engagements and, in most versions, preparing an income tax return.
For other services, a contingent fee is permitted if the client agrees in writing to its basis before the engagement is substantially complete and objectivity is not impaired.
No code we read mentions SR&ED, so whether preparing Form T661 counts as preparing an income tax return is not settled by the text.
Since 2014, federal law has required every SR&ED claim to report each paid preparer and the billing arrangement, including contingency fees, with a $1,000 penalty for missing or inaccurate information.

Why the provinces matter

Accountants in Canada are regulated by provincial bodies, each with its own code of professional conduct. The codes we were able to read contain a rule on contingent fees numbered Rule 215, with nearly identical wording across provinces.1234 The codes bind CPA members and registrants. They do not reach advisers who hold no CPA designation.

What Rule 215 says

The codes define a contingent fee as "a fee that is calculated on a predetermined basis relating to the outcome of a transaction or the result of services performed by the member or firm", with exceptions for fees fixed by a court, insolvency work and some trust and estate work.1

Rule 215.1 then provides that a member or firm "shall not offer or engage to perform a professional service for a contingent fee" where the service requires independence under Rule 204, is a compilation engagement, or is the preparation of an income tax return.1 Nova Scotia, Saskatchewan and New Brunswick use the same three exclusions.234

For any other service, Rule 215.2 permits a contingent fee "provided the client has agreed in writing to the basis for determining the fee before the substantial completion of the engagement" and the arrangement does not impair objectivity on independence work or influence a compilation or income tax return prepared for the same client.1 The guidance lists commodity tax refund claims and notices of objection as examples of work that might be done on a contingent fee basis, and states that its examples are not exhaustive.1

Where provinces differ, or could not be confirmed

The Alberta document we opened is dated September 2015. Its Rule 215.1 lists only independence work and compilation engagements, with no income tax return exclusion, and its written agreement must come "before the completion of the engagement".5 We could not confirm whether Alberta has amended the rule since.

For British Columbia we read a CPABC guidance article rather than the code itself. It describes the same three prohibitions and the written, advance agreement condition.6 We could not open Quebec's code of ethics, or the current codes for Manitoba and Prince Edward Island, and make no statement about them.

The SR&ED question

An SR&ED claim is made on a prescribed form, Form T661, which must be filed within 12 months after the filing due date for the year.7 The CRA's guide says the form "should be filed with your income tax return for the year".8

The codes do not define "preparation of an income tax return" and do not mention SR&ED.1 On the text alone, preparing Form T661 could be read as part of preparing the return, in which case a contingent fee would be barred for a CPA member, or as a separate service, in which case it would be permitted subject to Rule 215.2. We found no provincial guidance or ruling that chooses between those readings.

One published CPABC Investigation Committee summary concerns a member who "prepared an application for the Scientific Research and Experimental Development Tax Incentive Program on behalf of a client" and "charged a contingent fee for the work without agreement on the basis for the fee in writing with the client". The committee found contraventions including Code 215.1 and 215.2, listed under the heading "Contingent fees", and recommended a reprimand and payment of $1,687 in expenses.9 The summary does not say whether the fee was prohibited outright. It is a single record and shows nothing about frequency.

The federal disclosure rule

Separately from the codes, the Income Tax Act requires every SR&ED form to contain claim preparer information: the identity of any paid claim preparer and "the arrangement under which the claim preparer agrees to accept consideration".710 A false statement or omission in that information attracts a $1,000 penalty, for which the claim preparer is jointly and severally, or solidarily, liable, subject to a due diligence defence.10

Part 9 of Form T661 records each preparer's name, business number, billing arrangement code, rate and total fee. Code 1 is "a contingency fee as a percentage of the investment tax credit earned".8 Since 2014 the CRA has allowed the fee details to be filed separately where a preparer has confidentiality concerns, but they are still reported to the CRA.11

Budget 2013 said the information would "facilitate the identification of SR&ED program claims with a higher risk of non-compliance".12 We found no published aggregate data from these disclosures.

What the record shows

Provincial CPA codes restrict contingent fees for a short list of services and permit them elsewhere on conditions of written agreement and objectivity.1 They do not address SR&ED claims by name. Federal law does not restrict the fee but requires it to be reported to the CRA on every SR&ED claim, whoever prepares it.108 Several provincial texts remain to be confirmed, as marked above.

References

Chartered Professional Accountants of Ontario, CPA Code of Professional Conduct (adopted 26 February 2016), Definitions; Rule 215.1, 215.2 and Guidance to Rule 215. https://assets.cpaontario.ca/members/regulations-guidance/pdfs/CPA-Ontario-Code-of-professional-conduct.pdf (accessed 11 October 2026). Back
CPA Nova Scotia, CPA Code of Professional Conduct (adopted 15 July 2016), Rule 215. https://cpans.ca/common/Uploaded%20files/Bylaws/Code%20of%20Professional%20Conduct%20(February%207,%202020).pdf (accessed 11 October 2026). Back
Institute of Chartered Professional Accountants of Saskatchewan, Rules of Professional Conduct and Guidance, Rule 215. https://www.cpask.ca/public/CKeditorUpload/Protecting_the_Public/Documents/2022-06-01_FINAL_BOARD_APPROVED_RPC_with_Guidance.pdf (accessed 11 October 2026). Back
CPA New Brunswick, CPA Code of Professional Conduct (February 2023), Rule 215. https://cpanewbrunswick.ca/common/Uploaded%20files/Documents/Regulatory/CPA%20New%20Brunswick%20Code%20of%20Conduct%20EN%20February%202023.pdf (accessed 11 October 2026). Back
Chartered Professional Accountants of Alberta, CPA Rules of Professional Conduct and Related Guidance (September 2015), Rule 215. https://www.cpaalberta.ca/-/media/Files/Protecting-the-Public/Governing-Documents/CPAAlbertaRulesofProfessionalConductwithGuidance_070115.pdf (accessed 11 October 2026). Back
CPABC, Avoiding complaints about fees (last revision 1 March 2018). https://www.bccpa.ca/kbase/kbase-search/cpabc/cpabc-code-of-conduct/guidance/avoiding-complaints-about-fees/ (accessed 11 October 2026). Back
Income Tax Act, RSC 1985, c 1 (5th Supp), subsection 37(11). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-37.html (accessed 11 October 2026). Back
Canada Revenue Agency, Guide to Form T661 (T4088, Rev. 20), Part 9. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4088/guide-form-t661-scientific-research-experimental-development-expenditures-claim-guide-form-t661.html (accessed 11 October 2026). Back
CPABC, Investigation Committee determinations and recommendations, 2021 #22. A Member. https://www.bccpa.ca/member-practice-regulation/ethics-and-discipline/discipline-summaries-search/investigation-committee-determinations-and-recommendations/2021-22-a-member/ (accessed 11 October 2026). Back
Income Tax Act, RSC 1985, c 1 (5th Supp), subsections 162(5.1) to (5.3). https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-162.html (accessed 11 October 2026). Back
Canada Revenue Agency, SR&ED T661 Claim Form: revised optional filing measure for Part 9 (30 May 2014). https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program/whats-new-program/t661-claim-form-revised-optional-filing-measure-part-9.html (accessed 11 October 2026). Back
Department of Finance Canada, Economic Action Plan 2013, Annex 2, "Scientific Research and Experimental Development Program". https://www.budget.canada.ca/2013/doc/plan/anx2-eng.html (accessed 11 October 2026). Back