CRA expands its comments on the disclosure of tax accrual working papers
In the final version of his response to a question dealing with tax accrual working papers, Gordon Parr expanded his comments respecting solicitor-client privilege to include the bolded text below (as compared to the answer orally presented at the annual CTF conference):
A taxpayer may claim that the tax accrual working papers include information that is subject to solicitor-client privilege. The CRA cannot compel production of privileged communications, but a taxpayer has the right to waive privilege. The taxpayer’s list of uncertain tax positions that relates to the tax reserves in the taxpayer’s financial statements is considered to be part of the taxpayer’s books and records and is not a privileged document unless otherwise demonstrated.
This perhaps makes it clearer that CRA would acknowledge that it would be appropriate to redact any portion of the “list” that summarized tax advice received from a law firm.