Lin – Federal Court rejects a CRA request for an information-request compliance order because it was unclear which entities were covered

Three individuals whom CRA suspected of not disclosing offshore assets received letters requesting the filing of T1135s and requesting information, which CRA considered to be within its powers to request information under s. 231.1(1). In dismissing the Crown’s application for a compliance order under s. 231.7, Boswell J noted:

[T]he Letters are addressed to both the individuals and their connected entities. The entities are not specified, and it is not clear who is being audited - the individual Respondents or unnamed entities.

The Court must be satisfied that the person against whom a compliance order is sought is one who was required under section 231.1 or 231.2 to provide the access, assistance, information or document sought by the Minister. Because it is not at all clear whether the Letter was directed to the Respondents individually or their connected entities, the first requirement of section 231.7 … for obtaining a compliance order has not been satisfied … .

Neal Armstrong. Summary of Canada (National Revenue) v. Lin, 2019 FC 646 under s. 231.7(1).