A CFP professional discovers that a client, Mr. Patel, has misrepresented his income on his tax returns provided for financial planning. Which of the following best describes the professional's duty regarding this information?

Question: A CFP professional discovers that a client, Mr. Patel, has misrepresented his income on his tax returns provided for financial planning. Which of the following best describes the professional's duty regarding this information?

Answer options: ✅ The information is confidential and cannot be disclosed unless legally required or with client consent.

• The professional must immediately report the misrepresentation to the Canada Revenue Agency (CRA).
• The professional must confront Mr. Patel and demand he amend his tax returns, or terminate the engagement.
• The professional should use the inflated income figures in the financial plan as provided by the client.

Correct answer: The information is confidential and cannot be disclosed unless legally required or with client consent.

Explanation: Client information is confidential. While the professional cannot use false data, they are generally not permitted to disclose client tax misrepresentations to third parties like the CRA without legal compulsion or the client's explicit consent.