HomeMy WebLinkAbout80-017 GresimerTO:
DISCUSSION:
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
John D. Gresimer, Esquire
58 East Fourth Street
Emporium, PA 15834
March 12, 1980 Opinion # 80 -017
RE: Local Certified Public Accountant Serving as a Tax
Collector
FACTS:
On August 24, 1979, John D. Gresimer, Attorney for the
Cameron County Earned Income Tax Bureau, wrote this Commission
asking if a CPA with a small accounting practice could also
serve as a tax collector for the local earned income tax bureau.
He advised that the tax collector processes the local
income tax returns amounting to 1% of the tax payers income.
The collections are then despursed to the local municipalities
and school districts, as a 5% fee to the tax collector.
The tax collector's records are audited by another
independent certified public accountant.
The issue is whether a local certified public accountant
may serve as a tax collector, or whether such services per se
conflict in interest under Section 1 of the State Ethics Act.
We note that a tax collector is covered by the State Ethics
Act as a public official by virtue of the Section 2 definition.
This would include coverage of persons appointed to an elected
office.
A conflict of interest exists when an individual represents
two or more persons who have an interest adverse to eachother.
A certified public accountant has an obligation to maximize his
or her client's interest under the tax laws, while a tax collector
has responsibility to maximize the interests of the governmental
body which he or she represents. While the preparation of an
earned income tax form is purely ministerial, and incidental to
the regular work done by a CPA, we hold that a tax collector
should not prepare tax forms for clients in his private business
which he or she receives as tax collector.
Gresimer
March 12, 1980
Page 2
CONCLUSION:
PJS /alf -2
A local certified public accountant may serve as an earned
income tax collector as long as he does not complete or assist
in completing income tax returns that he receives.
Pursuant to Section 7(9)(i), this opinion is a complete
defense in any enforcement proceeding initiated by the Commission
and evidence of good faith conduct in any other civil or criminal
proceeding, providing the requestor has disclosed truthfully all
the material facts and committed the acts complained of in re-
liance on the advice given.
This letter is a public record and will be made available
as such.
` J. /Smit
Chairman;