Federal court | Tax | Income tax | Administration and enforcement
Minister of National Revenue brought application under s. 231.2(3) of Income Tax Act (ITA) and s 289(3) of Excise Tax Act (ETA) for judicial authorization to impose requirement on company P Co. to provide information and documents relating to unnamed persons. Application granted. Minister was authorized to impose requirement on P Co.. Conditions in statutes were met. Requirement related to ascertainable group of persons and was not overbroad. Unnamed persons were corporations and individuals holding business account with P Co. that had used P Co.’s online payment platform in course of commercial activities during four-year period. Application was brought in furtherance of valid audit undertaken to combat underground economy. Information sought was to verify compliance by unnamed persons with duties and obligations under ITA and ETA. P Co.’s confidentiality policy toward its clients or absence of threshold amount for each transaction of its clients did not constitute sufficient grounds to oppose requirement. Expectation of privacy with respect to business records was very low. Information sought was available in P Co.’s computer systems. It was appropriate and in interests of justice to exercise discretion in favour of Minister.
Canada (National Revenue) v. Paypal Canada Co. (2017), 2017 CarswellNat 6671, Denis Gascon J. (F.C.).