The appellant invested in limited partnerships marketed as tax shelters and made monthly interest payments on loans used to purchase the units.
The partnerships were later revealed to be a sham, and Revenue Canada disallowed the appellant's tax deductions.
The appellant sued the respondent accounting firm for negligence, alleging they breached the standard of care for a review engagement by failing to include a 'going concern' note in the financial statements, which he claimed would have prompted him to stop making interest payments earlier.
The Court of Appeal dismissed the appeal, upholding the trial judge's findings that the accountants met the standard of care for a review engagement and that, even if a going concern note had been included, the appellant would not have noticed it or acted upon it.
