Canada (Minister of National Revenue) v. Redeemer Foundation

Canada (Minister of National Revenue) v. Redeemer Foundation

The auditor's oral request for a donor list was authorized by the statutory audit and record-keeping provisions (notably ss.230, 230.2(2), 231.1 and related provisions); subsection 231.2(2)'s prior-judicial-authorization requirement did not apply to the auditor's request in the circumstances; the CRA lawfully used the information to reassess donors; the Federal Court's order overturning the demand and vacating reassessments was set aside and the application for judicial review dismissed.

Citation
2006 FCA 325
Parties
Appellant/respondent by Cross Appeal: The Minister of National Revenue; Respondent/appellant by Cross Appeal: Redeemer Foundation
Court
Federal Court of Appeal
Jurisdiction
Canada
Judgment Date
10 October 2006
Procedural Posture
Judicial Review of CRA Auditor's Information Request Under the Income Tax Act / Federal Court of Appeal Hearing on Appeal and Cross Appeal From Federal Court Judicial Review Order
Outcome
Appeal allowed; application for judicial review dismissed; cross-appeal dismissed
Legal Topics
Audit Powers, Information Demands, Subsection 231.2(2) Judicial Authorization, Record Keeping Obligations of Charities, Use of Audit Information to Reassess Third Parties, Standard of Review
Source Language
English
Tax Law Administrative Law Privacy Law Charity Regulation Audit Powers Information Demands Subsection 231.2(2) Judicial Authorization Record Keeping Obligations of Charities +2 more

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Parties

The Minister of National Revenue

Appellant/respondent by Cross Appeal

Redeemer Foundation

Respondent/appellant by Cross Appeal

Procedural Posture

Judicial Review of CRA Auditor's Information Request Under the Income Tax Act / Federal Court of Appeal Hearing on Appeal and Cross Appeal From Federal Court Judicial Review Order

Legal Issues

  1. 1 Whether the Canada Revenue Agency must obtain prior judicial authorization under s.231.2(2) before requesting information about unnamed persons from a taxpayer during an audit
  2. 2 Whether an oral request for information falls within the prior-authorization requirement of s.231.2(2)
  3. 3 Whether the Federal Court could set aside reassessments of donors that flowed from information obtained during the audit

Ratio Decidendi

The auditor's oral request for a donor list was authorized by the statutory audit and record-keeping provisions (notably ss.230, 230.2(2), 231.1 and related provisions); subsection 231.2(2)'s prior-judicial-authorization requirement did not apply to the auditor's request in the circumstances; the CRA lawfully used the information to reassess donors; the Federal Court's order overturning the demand and vacating reassessments was set aside and the application for judicial review dismissed.

Court Disposition

Appeal allowed; application for judicial review dismissed; cross-appeal dismissed

Orders

  • Set aside the decision of the Federal Court (Reasons for Order, 2005 FC 1361)
  • Dismiss the Redeemer Foundation's application for judicial review