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by Mike Caswell

PI Financial Corp. denies that it caused the tax problems of a former employee, James Oleynick, who is suing the firm for mishandling a tax-free savings account. PI says that Mr. Oleynick was responsible for his own misfortune. He circumvented restrictions and placed shares into a TFSA that were not capable of being sheltered from tax, PI claims.

The denial from PI comes in response to a lawsuit that Mr. Oleynick filed in the Supreme Court of British Columbia on March 11, 2021. He complained that PI executed transactions that resulted in an overcontribution to his TFSA in 2010 and 2011. (TFSA accounts, when introduced in 2008, came with an annual contribution limit of $5,000. Gains in the account are not subject to any tax, as long as the contributions do not exceed the limit.)

Mr. Oleynick complained that the problem came to light eight years after the transactions, when the Canada Revenue Agency reassessed his taxes. On April l2, 2019, he received a notice that directed him to pay $272,276 in taxes, fines, penalties and interest. He said that the bill arose as a result of mistakes that PI made, and sought court-ordered damages.

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