Edward Enterprise – Federal Court refuses addition to a disclosure compliance order of a condition that CRA give notice before disclosing the information to another authority

The Minister sought a compliance order under ETA s. 289.1(1) (similar to ITA s. 231.7(1)) to compel a Canadian corporation (EEIGI) to provide information needed in an audit. Southcott J rejected EEIGI’s request that the compliance order should include a condition that EEIGI be given notice before any of the information was shared outside the CRA (EEIGI’s principal was involved in foreign criminal proceedings).

Southcott J stated:

… EEIGI is seeking this relief without having articulated with any precision a basis in either fact or law for its concern that it may in the future face dissemination of the Required Information in a manner that offends the Charter.

… [R]equiring CRA to disclose, in the course of an investigation, the fact that the investigation is taking place could compromise the investigation. EEIGI has identified no precedent or statutory authority for the imposition of such a requirement, other than the general discretion that s 289.1(3) of the ETA affords to the Court to impose, in an order issued under s 289.1(1), any conditions that the Court considers appropriate.

Neal Armstrong. Summary of Canada (National Revenue) v. Edward Enterprise International Group Inc., 2020 FC 1044 under ETA s. 289.1(3).