Subject: Obtaining Information During Compliance Activities

Number: AD-25-04

Date issued: 2025-05-26

Issued by: Policy and Technical Working Group – Compliance Programs Branch, under the authority of the Directors General of all Directorates within the Compliance Programs Branch

Directorates affected:

• Business Tax Incentives Directorate
• Criminal Investigations Directorate – Illicit Income Audit Program
• GST/HST and Digital Compliance Directorate
• High Net Worth Compliance Directorate
• International and Large Business Directorate
• Small and Medium Enterprises Directorate

On this page

• Purpose
• Background
• Information gathering powers
  • Books and records
  • Requests for Information
  • Requirements for Information
  • Requirements for Foreign-Based Information
• Non-compliance
  • Interference or hindrance
  • Compliance orders
  • Stop-the-clock rule
  • Penalties
  • Prosecution
• Conclusion
• Annex A - Guidelines and additional considerations
  • Section A - General guidelines when seeking documents and information
  • Section B - Books and records
  • Section C - Procedures for Requests for Information pursuant to sections 231.1 of the ITA and 288 of the ETA
  • Section D - Procedures for Requirements for Information pursuant to sections 231.2 of the ITA and 289 of the ETA
  • Section E - Procedures for Foreign-Based Information Requirements pursuant to sections 231.6 of the ITA and 292 of the ETA
  • Section F - Guidelines for compliance orders
  • Section G - Specific types of information and documents
• Annex B - Template letters for Requests for Information (sections 231.1 of the ITA and 288 of the ETA)
  • Standardized Language
  • Template Letters
    • A. Request for Information (corporation)
    • B. Follow-up Request for Information (corporation)
    • C. Reply to request for additional time (corporation)
    • D. Follow-up Request for Information (individual)
• Footnotes

Purpose

This communiqué provides guidance on the use of information gathering powers that are available to authorized^{Footnote 1} Canada Revenue Agency (CRA) officials in the Compliance Programs Branch (CPB) when obtaining information from taxpayers, registrants, claimants, or any other person for audit purposes and other compliance activities related to the administration and enforcement of the Income Tax Act (ITA), Part IX of the Excise Tax Act (ETA), and any other applicable legislation.^{Footnote 2}

For the purposes of this communiqué, the CRA refers^{Footnote 3} to the documents or information sought:

• under sections 231.1 of the ITA and 288 of the ETA as a “Request for Information”
• under sections 231.2 of the ITA and 289 of the ETA as a “Requirement for Information”
• under sections 231.6 of the ITA and 292 of the ETA as a “Requirement for Foreign-Based Information"

This communiqué clarifies the CRA’s policy on the use of sections 231.1 of the ITA and 288 of the ETA as the primary information gathering powers when conducting audits and other compliance activities and the circumstances when other legislative powers may be appropriate.

The terms taxpayer, person, and registrant are defined in the ITA and the ETA.^{Footnote 4} In this communiqué, unless specified otherwise, the term taxpayer also includes registrants and claimants. The terms inspect, audit, examine, review, and risk assess are used interchangeably and are referred to collectively as audit and other compliance activities.

In the context of this communiqué, a taxpayer is the subject of the compliance activity. The reference to a “person” or “any other person” is someone other than the taxpayer who may have documentation or information that may be relevant in determining a taxpayer’s or any other person’s obligations or entitlements under the ITA or ETA. Sometimes “any other person” is referred to as a “third-party”. However, by virtue of most of the information gathering provisions in the ITA and ETA, and for purposes of this communiqué, unless otherwise specified in the law, the words “person” or “any other person” will be used instead of “third-party”.

The 2024 Federal Budget (PDF, 2 MB) proposed several amendments to the information gathering powers in the ITA, the ETA, and other applicable legislation. These amendments are intended to enhance the CRA’s effectiveness and efficiency in compliance activities and enforcement actions. This communiqué will be updated upon royal assent of the enacting legislation.

Background

The CRA administers tax, benefit and related programs, and conducts audits and other compliance activities to verify and enforce compliance with tax laws, and to maintain public confidence in the integrity and fairness of Canada’s self-reporting and self-assessment tax system.

A self-reporting and self-assessment tax system relies on the integrity and honesty of taxpayers and other persons to report their income and file their returns. While most taxpayers and other persons respect and comply with their tax obligations, there may be persons who unknowingly or in error fail to comply, or those who deliberately take advantage of the tax system to avoid their tax liability. To ensure compliance with tax laws and maintain the integrity of the tax system, CRA officials have broad powers to verify information and enforce compliance.

CRA officials are clearly and unambiguously granted legal authority under the respective legislation, for any purpose related to the administration or enforcement of the ITA and the ETA, to inspect, audit, or examine any document, including the books and records, property or processes of, or matters relating to a taxpayer or any other person that may be relevant in determining the obligations or entitlements of the taxpayer or any other person.

Taxpayers and other persons are legally obligated to respect and adhere to the information gathering powers granted to CRA officials by providing necessary documents, information, access, and reasonable assistance. To the extent these obligations are not met, the CRA will exercise the powers under the ITA and ETA to enforce compliance with tax laws and maintain the integrity of the tax system.

Information Gathering Powers

Books and records

Overview

Pursuant to sections 230 of the ITA and 286 of the ETA, a taxpayer or person who carries on business or who is required to file a return, claim a refund or rebate, or who is required to pay or collect tax or other amounts, must maintain books and records in Canada.^{Footnote 5}

Taxpayers and other persons have a legal obligation to maintain adequate documents and information to support their entitlements and tax filing positions, and to facilitate any possible future compliance activity as determined by the CRA and as set out in the ITA and ETA.

Failure to comply

If an examination of existing books and records establishes that they are inadequate for the purposes of the ITA or the ETA, subsections 230(3) of the ITA and 286(2) of the ETA provide the Minister of National Revenue (the Minister) the power to require a taxpayer or person to keep books and records as the Minister specifies.

Considerations

CRA officials should examine documents, including the books and records of a taxpayer or any other person and rely predominantly upon original source information, contemporaneous documentation, and other supporting records for the purposes of determining a taxpayer’s or any other person’s level of compliance.

Requests for Information

Overview

CRA officials will usually use sections 231.1 of the ITA and 288 of the ETA as the primary powers when seeking information from a taxpayer or any other person unless otherwise specified.

Sections 231.1 of the ITA and 288 of the ETA grant CRA officials broad powers of audit, inspection, examination, and entry to a premises for any purpose related to the administration or enforcement of the ITA or the ETA. The provisions require a taxpayer or any other person, including a person not subject to an audit or other compliance activity, to provide CRA officials with:

• documents including books and records
• information by answering all proper questions either orally or in writing
• all reasonable assistance to enable CRA officials to conduct audits and other compliance activities under the respective legislation

While the CRA refers to documents and information sought pursuant to sections 231.1 of the ITA and 288 of the ETA as a Request for Information, a taxpayer or any other person is legally required to comply with the request.

The following outlines the primary information gathering powers that CRA officials should use in carrying out their audits and other compliance activities:

1. Inspect, audit, or examine records
   
   • Paragraphs 231.1(1)(a) of the ITA and 288(1)(a) of the ETA provide that CRA officials may inspect, audit or examine any document, including books and records, of a taxpayer or any other person, that may be relevant in determining the obligations or entitlements of a taxpayer or any other person.
2. Examine property and processes
   
   • Paragraphs 231.1(1)(b) of the ITA and 288(1)(a) of the ETA provide that CRA officials may examine any property, including inventory, or process of, or matter relating to a taxpayer, or any other person.
3. Enter premises
   
   • Paragraphs 231.1(1)(c) of the ITA and 288(1)(b) of the ETA provide that CRA officials may enter into any premises or place where any business or commercial activity is carried on, any property is kept, anything is done in connection with any business or any books or records are or should be kept.
   • CRA officials may not enter a premises or place that is a dwelling-house unless consent of the occupant is given, or a warrant is obtained under subsections 231.1(3) of the ITA or 288(3) of the ETA.
4. Answer questions
   
   • Paragraphs 231.1(1)(d) of the ITA and 288(1)(c) of the ETA provide that a taxpayer or any other person may be required to give CRA officials all reasonable assistance and answer all proper questions with respect to the administration or enforcement of the ITA and the ETA.
   • CRA officials may require a taxpayer or any other person to respond to all proper questions, orally or in writing, pertaining to the documents, facts, and evidence with respect to a taxpayer’s obligations or entitlements or those of any other person under the ITA or the ETA. Questions answered in writing must be provided in any form specified by CRA officials, including but not limited to:
     • electronic spreadsheets or tables
     • organizational charts
     • similar forms of presentations
   • A taxpayer or any other person may be required to attend with CRA officials at a place designated by CRA officials, or by video-conference or by another form of electronic communication, and to answer questions orally.
5. Provide assistance
   
   • Paragraphs 231.1(1)(e) of the ITA and 288(1)(d) of the ETA provide that CRA officials can require a taxpayer or any other person to give CRA officials all reasonable assistance with anything the CRA officials are authorized to do under the ITA or the ETA.

Other persons

CRA officials may reasonably believe that outstanding information resides with another person. This could include:

• an officer or director of a corporation
• a majority shareholder of a corporation
• a trustee of a trust
• partners in a partnership
• another corporation
• the taxpayer’s employees, external accountants, advisors, suppliers, or customers

CRA officials should use the powers under sections 231.1 of the ITA and 288 of the ETA to obtain information that may be relevant to the audit of a taxpayer from other persons (including accountants). This excludes the specific circumstances where the powers under sections 231.2 of the ITA and 289 of the ETA should be invoked to obtain the information as outlined in the Requirement for Information section in this communiqué.

In light of the Supreme Court of Canada (SCC) decisions in Chambre des notaires du Québec and Thompson,^{Footnote 6} CRA officials should not request any client information or documents held by lawyers and notaries in their capacity as legal advisers whether or not the material is protected by solicitor-client privilege. CRA officials can seek documents and information from lawyers and notaries that they do not hold in their capacity as legal advisers. Refer to communiqué AD-21-05, Requesting Information from Lawyers and Notaries for more information.

CRA officials may seek the outstanding information as a new Request for Information from any other person that may be relevant to determining a taxpayer’s or any other person’s obligations or entitlements under the ITA or the ETA, while following-up on the outstanding responses from the particular person to whom the Request for Information was initially issued. This may be done before or while considering whether to initiate compliance proceedings against the non-compliant person.

Requests for Information should provide a reasonable amount of time to comply and must be consistent with the established timelines set out in communiqué AD-20-01, Standard Timelines for Information Requests to Taxpayers for Audit Purposes.

Failure to comply

Failure by a taxpayer or any other person to comply with their obligations under sections 231.1 of the ITA or 288 of the ETA could lead to consequences as outlined in the Non-compliance section of this communiqué.

CRA officials should follow up in writing if a taxpayer or any other person fails to comply, in full or in part, with a request or within the timeframes noted in the Request for Information. CRA officials should outline the information sought, the legal obligations to comply, the deadline to provide the information, and a warning of the potential consequences if they remain non-compliant. CRA officials must adhere to the timeframes established in communiqué AD-20-01, Standard Timelines for Information Requests to Taxpayers for Audit Purposes when addressing a failure to comply by a taxpayer or any other person. No further additional days should be provided beyond the follow-up request.

If a taxpayer or any other person engages in uncooperative behaviour or continues to be non-compliant or only partially complies in response to a Request for Information pursuant to sections 231.1 of the ITA or 288 of the ETA, CRA officials may consider:

• making inferences when no response is provided
• making assumptions about the facts and assessing on that basis
• making an assessment based on the information available
• seeking information from other persons
• seeking information from a foreign jurisdiction^{Footnote 7}
• asking the Department of Justice (DOJ) to apply for a compliance order^{Footnote 8}
• applying penalties^{Footnote 9}
• making a referral to the Public Prosecution Service of Canada (PPSC) for prosecution^{Footnote 10}

CRA officials should consult with their respective programs within Headquarters (HQ) when faced with information gathering challenges and when there is a pattern of non-compliance or partial compliance by a taxpayer or any other person.

Considerations

The legal obligation imposed on a taxpayer or any other person to comply with a Request for Information made pursuant to sections 231.1 of the ITA and 288 of the ETA is the same as the legal obligation imposed on a person required to comply with a Requirement for Information made pursuant to sections 231.2 of the ITA and 289 of the ETA.

Refer to Section C of Annex A for additional guidance and procedures relating to Requests for Information.

Requirements for Information

Overview

Sections 231.2 of the ITA and 289 of the ETA grant the Minister the power to require any person to provide any information or any document for any purpose related to the administration or enforcement of the ITA or Part IX of the ETA, a listed international agreement (including a Tax Information Exchange Agreement (TIEA) or the Multilateral Convention on Mutual Administrative Assistance in Tax Matters), or a tax treaty with another country.

Where the information and/or documents are being sought to verify compliance with the ITA or the ETA of an unnamed person, the procedures set out in subsections 231.2(2) and (3) of the ITA and 289(2) and (3) of the ETA must be followed.

Sections 231.1 of the ITA and 288 of the ETA are the primary powers that CRA officials will use when seeking information from a taxpayer or any other person. A Requirement for Information under sections 231.2 of the ITA or 289 of the ETA should be issued in the following three circumstances:

• information or documents held by a financial institution that relates to a taxpayer or person whose compliance is being verified
• information or documents requested on behalf of a foreign jurisdiction through a TIEA, a tax treaty, or the Multilateral Convention on Mutual Administrative Assistance in Tax Matters
• information or documents relating to unnamed person(s), whose compliance is being verified, that are required from any person^{Footnote 11} who has the information and judicial authorization pursuant to subsections 231.2(3) of the ITA or 289(3) of the ETA has been obtained

Requirements for Information under sections 231.2 of the ITA and 289 of the ETA may be considered in other instances on a case-by-case basis after consultation with the respective program within HQ.

Requirements for Information must be issued by the proper delegated authority^{Footnote 12} and must be served personally or sent by registered/certified mail. In the case of a bank or credit union, it can be sent electronically with prior written consent.

Failure to comply

Failure by a taxpayer or any other person to meet their obligations under sections 231.2 of the ITA or 289 of the ETA may result in the CRA asking the DOJ to initiate an application under section 231.7 of the ITA or 289.1 of the ETA for a compliance order, and other consequences as described in the Non-compliance section below.

Considerations

Where information is sought for the purpose of verifying compliance of a known taxpayer under audit, and the information or documents are required pursuant to sections 231.1 of the ITA or 288 of the ETA, the CRA is not required to obtain judicial authorization^{Footnote 13} under subsections 231.2(2) of the ITA or 289(2) of the ETA even if the information sought may include the identity of unnamed persons.^{Footnote 14}

Refer to Section D of Annex A for additional guidance and procedures relating to Requirements for Information.

Requirements for Foreign-Based Information

Overview

Sections 231.6 of the ITA and 292 of the ETA grant the Minister the power to require a person resident in Canada or a non-resident person carrying on business in Canada to provide any foreign-based information or documents.

A Requirement for Foreign-Based Information must be issued by the proper delegated authority^{Footnote 15} and must be served personally or sent by registered/certified mail. In the case of a bank or credit union, it can be sent electronically with prior written consent.

The phrase “foreign-based information or document” is defined as any information or document that is located outside Canada that may be relevant to the administration or enforcement of the ITA and the ETA, including the collection of any amount payable under the ITA and the ETA by any person.

Failure to comply

Currently, sections 231.7 of the ITA and 289.1 of the ETA do not apply to Requirements for Foreign-Based Information. Consequently, the Minister cannot initiate a compliance application to compel compliance with a Requirement for Foreign-Based Information issued under subsections 231.6(2) of the ITA or 292(2) of the ETA.

However, subsections 231.6(8) of the ITA and 292(8) of the ETA provide sanctions when a person fails to substantially comply with a Requirement for Foreign-Based Information (for example, the person withholds any information or document covered by the requirement). In those circumstances, the Minister may bring a motion to prohibit the information or document that should have been produced pursuant to the requirement from being introduced in subsequent proceedings relating to the administration or enforcement of the ITA and/or ETA (for example, in the Tax Court of Canada).

Considerations

Sections 231.1 of the ITA and 288 of the ETA should be used to obtain information when:

• information is available to a person in Canada or is accessible from Canada^{Footnote 16}
• information available to a non-resident person carrying on business in Canada, or documents or information that is, or should be, in the books and records of a resident taxpayer (even if those records are located outside of Canada)
• it is unclear if the information is foreign-based

Refer to Section E of Annex A for additional guidance and procedures relating to Requirements for Foreign-Based Information.

Non-compliance

Interference or hindrance

Subsections 231.5(2) of the ITA and 291(2) of the ETA make it an offence to physically or otherwise, interfere with, hinder, or molest a CRA official in the performance of their duties under the ITA or the ETA. It is also an offence to attempt to prevent the CRA official from carrying out those duties. A taxpayer or person must make reasonable efforts to comply with the requirements under subsection 231.5(1), sections 231.1 to 231.4 of the ITA or with the requirements under subsection 291(1), and sections 288 to 290 and 292 of the ETA.

Failure to comply

If a taxpayer or person fails to comply with sections 231.5 of the ITA or 291 of the ETA by engaging in conduct that interferes or hinders the Minister’s information gathering powers, subsections 238(1) of the ITA or 326(1) of the ETA may be engaged and the taxpayer or person may be found guilty of an offence and liable to a fine, imprisonment, or both.

Considerations

CRA officials that encounter attempts of interference or hindrance must consult with their respective program within HQ on whether a referral to the PPSC may be warranted.

Compliance orders

The Minister may write to the DOJ and request that an application for a compliance order be initiated under sections 231.7 of the ITA or section 289.1 of the ETA to compel a taxpayer or person, who has failed to comply with sections 231.1 or 231.2 of the ITA or sections 288 or 289 of the ETA.

A compliance order may be sought by the Minister when there is non-compliance with:

• a Request for Information issued pursuant to sections 231.1 of the ITA or 288 of the ETA to a taxpayer or any other person
• a Requirement for Information issued pursuant to sections 231.2 of the ITA or 289 of the ETA

Partial compliance constitutes non-compliance, where only some but not all the information is provided as required by sections 231.1 and 231.2 of the ITA and sections 288 and 289 of the ETA.

A judge hearing a compliance application under sections 231.7 of the ITA or 289.1 of the ETA can order a person to provide any access, assistance, information, or document sought by the Minister. The judge must be satisfied that the person was required under sections 231.1 or 231.2 of the ITA or sections 288 and 289 of the ETA to provide what was sought, that the person failed to do so, and that the information sought is not subject to solicitor-client privilege, litigation privilege, or common-interest privilege.^{Footnote 17}

Failure to comply

Failure or refusal to comply with a compliance order could result in the person being found in contempt of court pursuant to subsections 231.7(4) of the ITA or 289.1(4) of the ETA. If found in contempt, the Court may impose a fine, imprisonment, or both.

Considerations

CRA officials must notify their respective program within HQ when they intend to seek a compliance order.

Approval by the proper delegated authority^{Footnote 18} must be obtained before a referral is made to the DOJ to initiate a compliance application under sections 231.7 of the ITA and 289.1 of the ETA can be made.

Refer to Section F of Annex A for additional guidance and procedures relating to compliance orders.

Stop-the-clock rule

The stop-the-clock rule, contained in sections 231.8 of the ITA and 289.2 of the ETA, will extend the reassessment period of a taxpayer if the Requirement for Information is contested by way of a judicial review application or if a compliance application under sections 231.7 of the ITA or 288 of the ETA is initiated, to compel compliance with either Requests for Information or Requirements for Information, and the person opposes that application.

In the case of a Requirement for Information under sections 231.2 of the ITA and 289 of the ETA, the period will generally stop at the time a judicial review application of the requirement is made until the application is finally disposed of by the Court (including any appeals).

In the case of a compliance application, the period will stop at the time the taxpayer opposes, generally by way of notice of appearance, the application and until the application is finally disposed of by the Court (including any appeals).

The stop-the-clock rule does not apply to judicial review applications of Requests for Information made under sections 231.1 of the ITA and 288 of the ETA or to time limits in Canada’s tax treaties. However, the rule can be applied in the case of a compliance application filed with respect to non-compliance of a Request for Information made under sections 231.1 of the ITA and 288 of the ETA pursuant to paragraphs 231.8(b) of the ITA and 289.2(b) of the ETA.

The stop-the-clock rule under paragraph 231.8(b) of the ITA and paragraph 289.2(b) of the ETA only applies when a compliance application is initiated against the taxpayer. That is, these provisions only apply where the taxpayer is the person required to provide information or documents pursuant to a Request for Information or a Requirement for Information made under sections 231.1 and 231.2 of the ITA and sections 288 and 289 of the ETA.

Refer to communiqué AD-25-02, Accessing Foreign-Based Information and Documents for further information on the stop-the-clock rule for foreign-based information requirements.

Penalties

Failure to comply with sections 231.1 or 231.2 of the ITA or to provide information under Part IX of the ETA

Paragraph 162(7)(b) of the ITA provides for a penalty for a failure to file an information return or to comply with a duty or obligation imposed by the ITA, including a failure to comply with sections 231.1 or 231.2 of the ITA. A penalty may be applied, in an amount equal to the greater of $100 and $25 per day for each day that the failure to comply continues, up to a maximum of $2,500 for each failure.

There is an exception for this penalty when another provision of the ITA sets out a penalty for the failure. Fines that may be imposed by a judge for contempt of court with respect to a section 231.7 compliance order, or prosecution under subsection 238(1), are not considered a penalty under the ITA. Therefore, the exception does not apply.

Section 284 of the ETA provides for a penalty for a failure to provide information under Part IX of the ETA. A penalty of $100 may be applied for each failure to provide information.

Considerations

CRA officials must notify their respective program within HQ before assessing penalties under paragraph 162(7)(b) of the ITA or under section 284 of the ETA for a failure to comply with sections 231.1 or 231.2 of the ITA or for a failure to provide information under Part IX of the ETA. For specific programs,^{Footnote 19} penalties are included as a standard potential consequence of failing to comply.

Prosecution

Subsection 238(1) of the ITA makes it an offence for a taxpayer or a person to fail to file or make a return as or when required under the ITA or failing to comply with certain provisions of the ITA and the Income Tax Regulations, including any of sections 230 to 232 or with an order made under subsection 238(2) of the ITA.

Similar rules can be found in subsection 326(1) of the ETA for a failure to file or make a return as or when required under Part IX of the ETA or failing to provide information under certain provisions of Part IX of the ETA, including subsections 286(2) or 291(2), or with an order made under subsection 326(2) of the ETA.

In addition to any penalty otherwise provided, a taxpayer or a person is liable on summary conviction^{Footnote 20} to:

• a fine of not less than $1,000 and up to $25,000
• both the fine and imprisonment for up to 12 months

Additionally, the Court may, pursuant to subsections 238(2) of the ITA and 326(2) of the ETA, issue a compliance order to compel the person convicted of an offence under subsections 238(1) of the ITA or 326(1) of the ETA to provide the required information in order to enforce compliance with the provisions of the ITA and the ETA.

Considerations

Offences under subsection 238(1) of the ITA and subsection 326(1) of the ETA include such acts as failing to file a tax or information return or failing to comply with various provisions under the ITA or ETA, such as record-keeping requirements or complying with Requests for Information or Requirements for Information. These are strict liability offences, which only require proof of the act to constitute an offence, subject to a due diligence defence.

For specific programs,^{Footnote 21} CRA officials must include the possibility of the CRA seeking a summary conviction and compliance order^{Footnote 22} pursuant to section 238 of the ITA or 326 of the ETA as a potential consequence of failing to comply. For all other programs, CRA officials must consult with their respective program within HQ first.

For all programs, CRA officials must consult with their respective program within HQ when considering making a referral to seek a summary conviction under subsection 238(1) of the ITA or 326(1) of the ETA.

Conclusion

Annex A provides guidelines and additional considerations with respect to the information gathering powers.

Annex B provides standardized language when seeking information pursuant to sections 231.1 of the ITA and 288 of the ETA.

Please direct any questions relating to this communiqué to the appropriate functional program contact within HQ.

Issued by:

The Policy and Technical Working Group on behalf of all Directorates within the Compliance Programs Branch, under the authority of the Directors General of all Directorates within the Compliance Programs Branch

Circulated to:

• Regional Directors of Programs
• Assistant Directors of Audit
• Regional Program Advisors
• Directors General,
  • Business Tax Incentives Directorate
  • Compliance Services Directorate
  • Criminal Investigations Directorate
  • GST/HST and Digital Compliance Directorate
  • High Net Worth Compliance Directorate
  • International and Large Business Directorate
  • Small and Medium Enterprises Directorate

Annex A: Guidelines and additional considerations

Section A - General guidelines when seeking documents and information

Refer to Chapter 10.0 – Conducting the Audit of the Income Tax Audit Manual, Chapter 27 – Conducting and Chapter 41 – Requirements and compliance orders in the GST/HST Audit and Examination Manual for specific guidance when seeking documents and information while conducting audits or other compliance activities.

CRA officials can issue a Request or Requirement for Information at any time where the information or documents are sought for purposes of the administration or enforcement of the applicable legislation.

CRA officials will seek the information necessary to determine a taxpayer’s or any other person’s risk of non-compliance and to properly assess their obligations or entitlements under the applicable legislation that the CRA administers.

Taxpayers and other persons are expected to have full access to the information pertaining to their obligations or entitlements under the ITA and the ETA. They are expected to cooperate with CRA officials, respond to Requests or Requirements for Information, and to provide further explanation if necessary.

Openness, transparency, timely communication, and cooperation by CRA officials, taxpayers, and other persons will facilitate the efficiency and effectiveness of an audit or other compliance activity. This allows CRA officials to provide taxpayers or other persons with earlier tax certainty and to reduce the compliance burden whenever possible.

When evaluating the need for information, CRA officials should consider the purpose and scope of the audit or compliance activity, and the relevancy and the reasonableness of the documents and information being sought from a taxpayer or any other person.

The scope of an audit or other compliance activity will influence the type and volume of information required and is subject to change depending on the facts and circumstances of each particular case. An audit or other compliance activity may expand beyond an original audit plan to include other compliance issues involving the taxpayer or other persons.

CRA officials should explain in general terms, whether verbally or in writing, the audit or compliance issue and why the documentation and information being sought may be relevant in determining the obligations and entitlements of a taxpayer or any other person.

CRA officials should exercise judgement when carrying out their audit and compliance activities and should generally seek the appropriate amount of information necessary to validate or establish the obligations or entitlements of a taxpayer or any other person under the ITA or the ETA.

CRA officials must be prepared to review the documents and information that have been requested in a manner commensurate with the complexity and tax risks.

CRA officials should not routinely seek information that is known to be subject to solicitor-client privilege or litigation privilege, but at the same time should be aware that claims of privilege are sometimes made in relation to information that is not actually privileged. Where CRA officials suspect that a privilege claim may not be appropriate, DOJ should be consulted.

Refer to communiqué AD-21-04, Privilege Claims and communiqué AD-21-05, Requesting Information from Lawyers and Notaries for more information.

Section B - Books and records

A record is defined in subsection 248(1) of the ITA and in subsection 123(1) of the ETA.

Documents include all records in electronic or computerized format, paper records, images, and computer programs or files.

Taxpayer records must show an audit trail from the source documents to the financial accounts whether the transactions are documented on paper or electronically.

The ITA and ETA do not require taxpayers to keep their books and records in paper format. A taxpayer’s statutory requirement to keep books and records can be met provided the content and quality of electronic records^{Footnote 23} is sufficient to enable the taxes payable to be determined.

For purposes of the ITA, books and records must be kept for the period or periods provided by subsections 230(4) to (7) of the ITA and section 5800 of the Income Tax Regulations or until the Minister gives written permission for their disposal. Similar rules can be found in subsections 286(1) to (6) of the ETA.

Generally, the books and records retention period under the ITA and ETA (including electronic records) is a minimum six years from the end of the taxation year (year for GST/HST purposes) to which they relate.^{Footnote 24} However, the following records must be kept for a corporate taxpayer until the period ending on the day that is two years after the day that the corporation is dissolved:

• directors’ meeting minutes
• shareholders’ meeting minutes
• details regarding the ownership of capital stock shares and any transfers thereof
• the general ledger or other book of final entry containing transaction summaries
• any special contracts or agreements necessary to understanding entries in the general ledger or other book of final entry
• all other records and books of account of a corporation, and all vouchers and accounts necessary to verify the information in such records and books of account

Taxpayers must also keep certain records pertaining to their foreign affiliates. Refer to the Information Circular IC77-9R, Books, Records and Other Requirements for Taxpayers Having Foreign Affiliates for more information.

Section C - Procedures for Requests for Information pursuant to sections 231.1 of the ITA and 288 of the ETA

Requests for Information can take the form of:

• a contact letter
• a questionnaire
• a screening review
• an oral interview
• a query
• any other type of information gathering instrument

Requests for Information may be issued verbally or in writing, and served personally or sent by mail or electronically, including through the CRA account portals. Verbal requests that require a written response should be followed up in writing.

CRA officials should consider other sources of information that may be relevant in determining a taxpayer’s or another person’s obligations or entitlements under the ITA or the ETA. CRA officials may issue separate requests to those persons or concurrent requests to a taxpayer and any other person when appropriate. This could include requesting information from an officer or director of a corporation, shareholders of a private corporation, a trustee of a trust, partners in a partnership, and the taxpayer’s external accountants, other advisors, suppliers, or customers.

Content of the Request for Information

Requests for Information under sections 231.1 of the ITA and 288 of the ETA should include the following information:

• the legislative reference to sections 231.1 of the ITA or 288 of the ETA
• the identity of the person whose data is being sought
• the time period for which the data is being sought
• a description of what documentation or information is being sought
• a reasonable amount of time to comply and the date noted for providing such information which must be consistent with the established timeframes provided in communiqué AD-20-01, Standard Timelines for Information Requests to Taxpayers for Audit Purposes

Generally, a Request for Information under sections 231.1 of the ITA or 288 of the ETA will not reference the possible consequences of non-compliance. For a more direct approach, or in cases where the taxpayer has a history of non-compliance, CRA officials may use their discretion to include the potential consequences of failing to comply with a Request for Information.

Refer to Section A of Annex B for an example of a Request for Information letter.

Receipt of information and documents

CRA officials are expected to communicate with taxpayers^{Footnote 25} and to inform a taxpayer of the next steps in the compliance activity process.

Extension of time to comply with a Request for Information

CRA officials should not offer extensions of time to provide information sought under sections 231.1 of the ITA or 288 of the ETA. However, a delay in enforcement action may be considered for an outstanding request, provided it is reasonable and within the established timelines outlined in communiqué AD-20-01, Standard Timelines for Information Requests to Taxpayers for Audit Purposes. When replying in writing to a request from a taxpayer or any other person for additional time to respond, CRA officials:

• should provide a deadline for the delay in enforcement action
• must clearly identify the outstanding Request for Information
• must state the consequence(s) of failing to comply

Refer to Section C of Annex B for an example of a reply letter to a request for additional time to a Request for Information.

Documenting information gathering efforts

Outstanding Requests for Information should:

• not be mixed with new requests (Follow-Up Requests should not include new questions)
• be well-documented in the audit file
• be identified separately to provide support for a potential compliance application under section 231.7 of the ITA or 289.1 of the ETA

CRA officials should maintain the following information in their audit files:

• a history of the attempts made to obtain the information, including any delays or additional time granted (this should be supported by the T2020)
• the specific information required and why it is being sought
• all correspondence sent to and received from the taxpayer or any other person from whom the CRA required the information
• a summary of questions, documents, and information that remain outstanding
• any documents or evidence that supports the taxpayer’s or any other person’s awareness of, or receipt of, the request

Non-compliance (or partial compliance) with a Request for Information

When a taxpayer or any other person fails to comply or only partially complies with a Request for Information, CRA officials should consider:

• seeking the information from another person, or issuing concurrent requests to a taxpayer and another person (such as a corporate director) under sections 231.1 of the ITA and 288 of the ETA
• assessing the information that remains outstanding and whether the information provided is sufficient to verify, assess, determine, or conclude on the particular issue
• making inferences and assumptions about the facts and assessing on that basis
• responding to the non-compliance in a written Follow-up Request letter, which reiterates the legal obligations described in the Request for Information and describes the potential consequences of further failures to comply

Consequences for failing to comply with the Request for Information may be pursued when warranted without follow-up if the Request for Information clearly described the potential consequences for failing to comply and stated that those potential consequences may be pursued "without further notice”.

A Follow-up Request must:

• reiterate the legal obligations under sections 231.1 of the ITA and 288 of the ETA
• not include new questions that were not asked in the original Request
• clearly outline all outstanding information or documentation
• confirm any information or documentation that has been received
• clearly state the deadline to provide the outstanding information (which must fall within the timelines outlined in communiqué AD-20-01, Standard Timelines for Information Requests to Taxpayers for Audit Purposes)
• include a description of the potential consequences the CRA may pursue if the failure to comply continues beyond the deadline:
  • initiating legal proceedings for a compliance order under sections 231.7 of the ITA or 289.1 of the ETA^{Footnote 26}
  • assessing a penalty under paragraph 162(7)(b) of the ITA^{Footnote 27}
  • seeking a prosecution and compliance order pursuant to sections 238 of the ITA and 326 of the ETA^{Footnote 28}

Where the Follow-Up Request also does not result in compliance, CRA officials must consider applying, assessing, or pursuing one or more of the potential consequences described in this section.

Refer to Section B of Annex B for an example of a follow-up letter on a failure to comply with a Request for Information.

Section D - Procedures for Requirements for Information pursuant to sections 231.2 of the ITA and 289 of the ETA

When issuing a Requirement for Information, CRA officials must be able to demonstrate that the information required may be relevant and is sought in relation to the administration and enforcement of the tax laws.

Content of the Requirement for Information

Requirements for Information under sections 231.2 of the ITA and 289 of the ETA should be issued in the circumstances described in the Information Gathering Powers section of this communiqué and must be made by a proper delegated authority and include:

• a notice by the delegated authority
• the correct name and address of the person or legal entity being served (the person required to provide the information)^{Footnote 29}
• the legislative reference to subsections 231.2(1) of the ITA or 289(1) of the ETA
• the identity of the person whose information is being sought without indicating whether the requirement is with respect to an audit of the person or a tax collection effort
• the time period for which the documents and information are being sought
• a description of what documentation or information is required
• the consequences of non-compliance,^{Footnote 30} including the Minister initiating a compliance application for an order under sections 231.7 of the ITA or 289.1 of the ETA
• a reasonable deadline for providing the information or documents

The requirement must allow a reasonable amount of time to provide the information. Jurisprudence has confirmed that 30 days is generally considered a reasonable period. Longer timeframes may be considered depending on the scope of the information required or the circumstances of the file.

The requirement must be signed by a CRA official that has been delegated such signing authority according to ITA or the ETA as applicable.^{Footnote 31}

Requirements for Information sent to financial entities that are included in the RFI / RTP Financial Institution Contacts list should use a signature block and the following statement: “This document was approved and issued by the delegated authority named in this letter.”

Refer to communiqué AD-24-01, Guidance on the Appropriate Use of Signatures for specific guidance on the appropriate use of signatures, including electronic signatures while administering or enforcing the ITA, the ETA, and other legislation administered by the CRA.

Serving a requirement

Pursuant to subsections 231.2(1.1) of the ITA and 289(1.1) of the ETA, a requirement must be:

• served personally
• sent by registered or certified mail
• sent electronically to a bank or credit union that has provided written consent to receive notices electronically

Time to comply

Taxpayers and other persons are expected to communicate the potential need for additional time to comply with the requirement as soon as possible after the requirement is received.

CRA officials should not offer extensions of time or additional delays as this could affect the validity of the requirement, and therefore the possibility of obtaining a compliance order. Where the circumstances warrant, CRA officials may consider delaying taking enforcement actions.

If the person submits sufficient documentation shortly after the due date stipulated in the requirement, the response should normally be accepted, and a compliance order should not generally be sought. However, each situation must be evaluated on a case-by-case basis.

Financial Institutions

CRA’s administrative practice is to use the provisions of sections 231.2 of the ITA and 289 of the ETA to seek information of a taxpayer from a financial institution (FI).

The majority of FIs have a single location where all requirements are to be served under section 462 of the Bank Act. It is important to serve the requirement to this designated location (often called the Third Party Demands Group) identified by the FI on the RFI / RTP Financial Institution Contacts list unless the branch of the taxpayer's account allows for the requirement to be served directly on the branch of the taxpayer’s account.

For the proper legal entity and correct legal address for FIs and mortgage subsidiaries of FIs, go to RFI / RTP Financial Institution Contacts list. If a CRA official does not know where a specific asset of a taxpayer is held within a large FI group with several distinct entities, the requirement can specify the main entity.

For assistance contact RFI Assistance referrals / DPR Renvois assistance (CRA/ARC).

Serving requirements on FIs for purposes of obtaining taxpayer information is a two-step process:^{Footnote 32}

• Step 1 - Issue a requirement to the FI requesting basic customer information, such as the customer profile and all bank, credit card, mortgage, and investment statements. FIs are generally expected to provide the information within 30 calendar days. CRA officials will analyse the response and determine if more specific information is required.
• Step 2 - When more specific information is required, issue another requirement requesting the additional information, such as specific transactions and source documents. FIs are generally expected to provide this information within 60 calendar days. Step 2 has been created because a financial institution may require more time to retrieve the additional customer records from the branch account or from a third-party provider that stores the records.

If there is difficulty in obtaining information from the FI, an escalation process has been established with a designated banking liaison officer. This officer may be reached by email at RFI Assistance referrals / DPR Renvois assistance (CRA/ARC). The CRA liaison officer will contact senior representatives of the financial institution in an effort to obtain the necessary information in a timely manner.

Caution must be exercised when preparing a requirement to be sent to an FI that seeks to obtain information regarding a lawyer’s or notary’s bank accounts. Such a requirement must be done in accordance with the CRA procedures set out in communiqué AD-21-05 - Requesting information from lawyers and notaries.

Information requested on behalf of a foreign jurisdiction

Specific taxpayer information may be requested by a foreign jurisdiction under a Tax Information Exchange Agreement, a tax treaty, or the Multilateral Convention on Mutual Administrative Assistance in Tax Matters under an Exchange of Information (EOI) provision, and other similar agreements. Requirements for Information to satisfy these types of requests are issued by specific areas of the CRA.

Unnamed person(s)

Judicial authorization must be obtained by CRA officials in accordance with subsections 231.2(2) of the ITA or 289(2) of the ETA where the information sought in the requirement is for the purposes of verifying compliance by a taxpayer or taxpayers whose identity is unknown to the CRA. CRA officials must obtain judicial authorization under subsections 231.2(3) of the ITA or 289(3) of the ETA if the information sought:

• relates to unnamed person(s)
• is not being sought for purposes of an audit of the person who has the information
• will be used to verify the compliance of the unnamed person(s) with the ITA or Part IX of the ETA

When the source of the unnamed person(s) is a FI, the DOJ should be consulted.

If at least one taxpayer in a related or unrelated group of persons is known to the CRA for whom information is being sought, then CRA officials must use the powers under sections 231.1 of the ITA and 288 of the ETA to obtain the information. If all potential persons in the group are unknown to the CRA for whom the information is being sought for the purpose of verifying the compliance of one or more persons in the group, from another person, that is not subject to a compliance activity, then judicial authorization must be obtained. Once an order is granted to impose an unnamed persons requirement, it should be followed by the issuance of a requirement.

CRA officials may obtain information on unnamed persons during the audit of a taxpayer without judicial authorization,^{Footnote 33} regardless of whether there is a possibility or a probability that the audit will lead to the review of other unnamed persons. The CRA is entitled to obtain information it would otherwise have the ability to see in the course of an audit.^{Footnote 34} In situations where there is a strong likelihood that the unnamed person will also be audited,^{Footnote 35} CRA officials must consult their respective program within HQ who will engage the DOJ as necessary.

The following conditions must be met before judicial authorization is granted:^{Footnote 36}

1. the person or group of persons is ascertainable
2. the requirement is made to verify the compliance of the unnamed person(s) with their duties and obligations under the legislation

Once judicial authorization is obtained, a requirement under subsection 231.2(1) of the ITA or subsection 289(1) of the ETA must be issued to the third-party to obtain the required information.

Section E - Procedures for Foreign-Based Information Requirements pursuant to sections 231.6 of the ITA and 292 of the ETA

Refer to Section 10.8.5 of the Income Tax Audit Manual – Preparing requirements of the Income Tax Audit Manual and Chapter 41 – Requirements and compliance orders of the GST/HST Audit and Examination Manual for specific guidance on Foreign-Based Information Requirements.

Also refer to communiqué AD-25-02, Accessing Foreign-Based Information and Documents for further information and procedures regarding foreign-based information requirements.

CRA officials may consider a Requirement for Foreign-Based Information pursuant to sections 231.6 of the ITA or 292 of the ETA, or an EOI request where a person resident in Canada or a non-resident person carrying on business in Canada, is unable to provide or has not provided foreign-based information or documents. For example, a Requirement for Foreign-Based Information or EOI could be pursued if the information is in the possession of a related non-resident person that is unwilling to provide it to a Canadian taxpayer.

Content of the requirement

Requirements for Foreign-Based Information under sections 231.6 of the ITA and 292 of the ETA must include:

• a description of the documents or information being sought
• the consequence(s) under subsections 231.6(8) of the ITA or 292(8) of the ETA for failure to comply
• a reasonable deadline of at least 92 days for providing the information or documents

Serving a requirement

Pursuant to subsections 231.6(3.1) of the ITA and 292(3.1) of the ETA, a foreign-based information requirement must be:

• served personally
• sent by registered or certified mail
• sent electronically to a bank or credit union that has provided written consent to receive notices electronically

Refer to communiqué AD-25-02, Accessing Foreign-Based Information and Documents for further information and procedures regarding foreign-based information requirements.

Refer to the Exchange of Information Services - Reference Guide for additional information and procedures on EOI services.

Section F - Guidelines for compliance orders

The Minister’s delegated authority will send a referral to the DOJ to initiate a compliance application for an order under sections 231.7 of the ITA or 289.1 of the ETA where the person failed to provide the required information.

While each program may use program-specific procedures,^{Footnote 37} the guidelines below should be followed when referring the matter to the DOJ for a compliance order:

1. Ensure that the requesting CRA official has obtained the approval of the proper authority under the CRA Delegation of Authority instrument^{Footnote 38} where required.
2. Once the proper authority is confirmed, write a letter or email to the Director of Tax Law Services of the regional office of the DOJ where the application has to be filed (for example, if Montreal TSO requests an application for a compliance order to be filed against an individual residing in Toronto, the Montreal TSO should send the request for assistance to DOJ in Toronto and not in Montreal) and request that the DOJ seek a compliance order.
3. The following information should be included in the letter or email:
   • a history of the CRA official’s attempts to get the information
   • copies of all correspondence that were sent and received
   • a copy of the T2020
   • any information that was provided
   • a summary of what remains outstanding
   • any proof of service or proof that the person is aware of the request or requirement
   • the name and contact information of the CRA official with whom the representative of the DOJ should communicate regarding the file

Before applying to a judge for a compliance order, the DOJ representative will review the appropriateness of the Request for Information or the Requirement for Information with the CRA official. They will also contact the person to give them one last opportunity to comply with the request or the requirement.

The majority of steps to get the matter before the Court will be handled by the DOJ. The DOJ will send a warning letter with 21 days to comply. Depending on the facts of the file, DOJ may concurrently file a compliance application or wait to determine if the person has complied by the 21-day deadline. DOJ will file a compliance application with the Court. The CRA official will eventually need to swear or affirm an affidavit, which will include facts detailing the attempts to obtain the information from the taxpayer or person as well as facts showing how the Minister meets the requisite conditions of the legislation.

Once the application record is complete, the notice of summary application and application record are personally served on the person. The DOJ lawyer assigned to the case will attend on the hearing date and will argue the application before a judge of the Federal Court.

If the non-compliance involves a Requirement for Information to a FI, CRA officials should first proceed with the escalation process for FIs as outlined in Section D of Annex A in this communiqué.

Section G - Specific types of information and documents

Obtaining information from a treaty partner

The information sought may be on file with the tax authority of the other jurisdiction, or it may be with another person for whom the other tax authority can use its domestic information gathering powers to obtain the information. The CRA cannot ask the other tax authority to exercise information gathering powers that are beyond what it can do under its applicable domestic law.

Before making an EOI request, all reasonable efforts using the information gathering powers provided to CRA officials under the ITA and ETA as outlined in this communiqué must be exhausted to secure the information domestically.

CRA officials should refer to the Exchange of Information Services – Reference Guide when considering obtaining information under an EOI.

Transfer pricing documentation

CRA officials requiring contemporaneous documentation for the purposes of verifying international transfer pricing should refer to guidance on communiqué ILBD-07-02R2, Contemporaneous Documentation.

Tax accrual working papers

Certain corporations are required by the International Financial Reporting Standards (IFRS) and other accounting standards to reflect material uncertain tax treatments (UTT) in their audited financial statements. A UTT is a tax treatment for which there is uncertainty over whether the relevant taxation authority will accept the tax treatment under tax law.

A corporation’s listing of UTTs, and related probability analysis as to whether the tax authority will accept the corporation’s filing position or not, is typically reflected in the tax accrual working papers (TAWPs) and are considered part of a person’s books and records that must be maintained pursuant to section 230 of the ITA.

When necessary, CRA officials may require the production of a taxpayer’s UTTs and related TAWPs under section 231.1 of the ITA for purposes of an audit and other compliance activities.

Reportable and notifiable transactions, and reportable uncertain tax treatments

As part of the mandatory disclosure rules found in sections 237.3 to 237.5 the ITA, certain taxpayers, advisors, and corporations are required to file an information return with the CRA listing their:

• reportable transactions pursuant to section 237.3 of the ITA
• notifiable transactions^{Footnote 39} pursuant to section 237.4 of the ITA
• reportable uncertain tax treatments (RUTTs)^{Footnote 40} pursuant to section 237.5 of the ITA

CRA officials may require information regarding the reportable or notifiable transactions, or the RUTT disclosures filed with the CRA to facilitate their audits and compliance activities.

Irrespective of whether the corresponding information returns were filed, CRA officials can require a taxpayer or corporation to provide information or documents pursuant to sections 231.1 and 231.2 of the ITA for the purposes of verifying and ascertaining any information in respect of:

• reportable transactions by virtue of subsection 237.3(13) of the ITA
• notifiable transactions by virtue of subsection 237.4(17) of the ITA
• RUTTs, including any information relating to any transaction, or series of transactions, to which the RUTT relates by virtue of subsection 237.5(8) of the ITA

For additional information, refer to the guidance on the Mandatory Disclosure Rules.^{Footnote 41}

Annex B: Template letters for Requests for Information (sections 231.1 of the ITA and 288 of the ETA)

Standardized language

The following letters provide the standardized language CRA officials must use when issuing Requests for Information pursuant to sections 231.1 of the ITA and 288 of the ETA, when replying to a request for additional time to respond, and when notifying the taxpayer or any other person of a failure to comply with a Request for Information. For greater certainty, this standardized language must also be used in what is commonly referred to as a query.

Refer to Section C of Annex A and the template letters in this Annex for further direction.

Template letters

While the following letters in sections A to C relate to information sought from a corporation, template letters for Requests for Information, including for other types of taxpayers and persons are available in the Integras Template Library.

When a Request for Information or a Follow-Up Request is being sent to a corporation, a separate Request for Information should be issued to a director of the corporation at the same time requiring the assistance of the director to provide the same documents and information requested from the corporation. Examples of a director letter are available in the Integras Template Library.

The letter in section D is an example of a Follow-Up Request relating to information previously sought from an individual. With minor changes, it could also be used to follow up with a corporate director in respect to information concurrently requested from a corporation.

A. Request for Information (corporation)

Instructions

Please review this instruction page before downloading and adapting Letter A, on the next page. These templates are for standard language only and may not meet your program’s formatting requirements for letters to taxpayers.

Program specific standard potential consequences

The following text is to be used with discretion by HNWCD and ILBD CRA officials only (if used, all three listed consequences must be included in full):

If [Name of Corporation] does not fully comply with the request by [DATE], the CRA may:

• Assess a penalty pursuant to paragraph 162(7)(b) of the Act of $25 for each day the failure continues, up to a maximum of $2,500.
• Initiate legal proceedings for a compliance order under section 231.7 of the Act. Failure to comply with a compliance order could result in [Name of Corporation] being held in contempt of court.
• Seek a prosecution and a compliance order pursuant to section 238 of the Act, which states that a person who fails to comply with an information requirement is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to a fine of up to $25,000; or imprisonment for a term not exceeding 12 months, or both.

A notification to HQ must be made of the intent to seek a compliance order. To capture data on the use of these penalties, a notification to HQ must be made of the intent to assess penalties, however, approval is not required. HQ approval is required before actioning a referral for prosecution.

[Date]

[Legal name of Corporation that you are requesting information from]

[Registered Office Address of the Corporation]

Attention: [Name of the employee/officer/director who you think will deal with the request without honorific, unless specifically requested by the correspondent]

Re: Request for information and documents for the [taxation year(s) / fiscal period(s), START DATE to END DATE]

Account number: [BN]

Case number: [Integras case number]

Pursuant to [subsection 231.1(1) of the Income Tax Act (the Act)] [subsection 288(1) of the Excise Tax Act (the Act)] and for purposes related to the administration or enforcement of the Act, [Name of Corporation] is required to provide the following information and documents within thirty (30) days from the date set out at the top of this request.

1. [Insert a numbered list of information and documents required and include the relevant time frame for those documents if you are looking for information/documents from a particular period of time.]

2.

3.

To comply with this request, please provide the required information and documents to the attention of [CRA official’s name] at the address below or through the Canada Revenue Agency’s (CRA) secure portals within the time period specified above.

Documents and information can be submitted quickly and securely to the CRA through the CRA’s My Business Account and Represent a Client secure portals. Please reference case number [Integras case number] for the transmission to be successful.

If [Name of Corporation] would like to discuss alternative methods of making available the information and documents required, please contact [CRA official’s name] at [phone number].

[Insert program-specific standard potential consequences – discretionary use in exceptional circumstances.]

If you have any questions, please contact me at [phone number]. Alternatively, [Team leader name], the team leader, may also be reached at [phone number].

Sincerely,

[Name of CRA official sending the request]

[Program Name]

[Tax Service Office and Address]

Website: Canada.ca/revenue-agency

B. Follow-up Request for Information (corporation)

Instructions

Please review this instruction page before downloading and adapting Letter B, on the next page. These templates are for standard language only and may not meet your program’s formatting requirements for letters to taxpayers.

Program specific standard potential consequences

HNWCD and ILBD only: All correspondence citing the potential consequences of non-compliance must consistently include:

• 1) seeking a compliance order under sections 231.7 of the ITA
• 2) assessing penalties under paragraphs 162(7)(b) of the ITA
• 3) seeking a possible prosecution under subsections 238(1) of the ITA

HQ approval is not required to describe the potential consequences of using the program specific standard language in correspondence. A notification to HQ must be made of the intent to seek a compliance order. To capture data on the use of these penalties, a notification to HQ must be made of the intent to assess penalties, however, approval is not required. HQ approval is required before actioning a referral for prosecution.

Standard potential consequences

All other directorates/programs. CRA officials should review program specific guidance when considering additional consequences.

[Date]

[Legal name of Corporation that you are requesting information from]

[Registered Office Address of Corporation]

Attention: [Name of the employee/officer/director who you think will deal with the request, without honorific, unless specifically requested by the correspondent]:

Re: Failure to comply with request for information and documents for the [taxation year(s) / fiscal period(s), START DATE to END DATE]

Account number: [BN]

Case number: [Integras case number]

We are writing further to the request for information and documents dated [DATE] (copy enclosed). The request was made pursuant to [subsection 231.1(1) of the Income Tax Act (the Act)] [subsection 288(1) of the Excise Tax Act (the Act)] for purposes related to the administration or enforcement of the Act. To date, [Name of Corporation] has failed to provide the following information and documents, which [Name of Corporation] was required to provide by [DATE]:

[Insert a table or list to clearly articulate the outstanding information and documents required that were not provided from the original Request for Information.]

[Include one of the following two sections (Program specific standard potential consequences or Standard potential consequences) describing the potential consequences for failing to comply.]

[For HNWCD and ILBD only: Program specific standard potential consequences]

If [Name of Corporation] does not fully comply with the request by [DATE], the Canada Revenue Agency may without further notice:

• Assess a penalty pursuant to paragraph 162(7)(b) of the Act of $25 for each day the failure continues, up to a maximum of $2,500.
• Initiate legal proceedings for a compliance order under section [231.7 of the Act] [289.1 of the Act]. Failure to comply with a compliance order could result in [Name of Corporation] being held in contempt of court.
• Seek a prosecution and a compliance order pursuant to section [238 of the Act] [326 of the Act], which states that a person who fails to comply with an information requirement is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to a fine of up to $25,000; or imprisonment for a term not exceeding 12 months, or both.

[For all other directorates/programs: Standard potential consequences]

If [Name of Corporation] does not fully comply with the request by [DATE], legal proceedings may be initiated against [Name of Corporation] for a compliance order under section [231.7 of the Act][289.1 of the Act] without further notice. Failure to comply with a compliance order could lead to further legal proceedings against [Name of Corporation] for contempt of court.

If you have any questions, please contact me at [phone number].

Sincerely,

[Name of CRA official sending the request]

[Program Name]

[Tax Service Office and Address]

Website: Canada.ca/revenue-agency

Enclosure: Request letter dated [DATE]

C. Reply to request for additional time (corporation)

Instructions

Please review this instruction page before downloading and adapting Letter C, on the next page. These templates are for standard language only and may not meet your program’s formatting requirements for letters to taxpayers.

For this template, please read the coloured, bracketed information carefully and make the appropriate selection.

Program specific standard potential consequences

HNWCD and ILBD only: All correspondence citing the potential consequences of non-compliance must consistently include:

• 1) seeking a compliance order under sections 231.7 of the ITA
• 2) assessing penalties under paragraphs 162(7)(b) of the ITA
• 3) seeking a possible prosecution under subsections 238(1) of the ITA

HQ approval is not required to describe the potential consequences of using the program specific standard language in correspondence. A notification to HQ must be made of the intent to seek a compliance order. To capture data on the use of these penalties, a notification to HQ must be made of the intent to assess penalties, however, approval is not required. HQ approval is required before actioning a referral for prosecution.

Standard potential consequences

All other directorates/programs: CRA officials should review program specific guidance when considering additional consequences.

[Date]

[Legal name of Corporation that you are requesting information from]

[Registered Office Address of Corporation]

Attention: [Name of the employee/officer/director who you think will deal with the request, without honorific, unless specifically requested by the correspondent]:

Re: Request for additional time to complete the request for information and documents for the [taxation year(s) / fiscal period(s), START DATE to END DATE]

Account number: [BN]

Case number: [Integras case number]

We are writing further to the request received for additional time beyond the initial deadline of [DATE] to respond to our request for information and documents of [DATE] (attached), which was made pursuant to [subsection 231.1(1) of the Income Tax Act (the Act)] [subsection 288(1) of the Excise Tax Act] (the Act)] for purposes related to the administration or enforcement of the Act.

[Include one of the following two sections describing the information and documents provided at the time of the request for additional time.]

To date, [Name of Corporation] has not provided the information and documents required in our request for information and documents of [DATE].

To date, [Name of Corporation] has made a partial response to our request for information and documents of [DATE] and the following information and documents remain outstanding: [Insert a table or list to clearly articulate the outstanding information and documents required that were not provided from the original Request for Information.]

[Include one of the following two paragraphs depending on the program area.]

We confirm that the Canada Revenue Agency will defer any potential referral of this matter to the Department of Justice for compliance action until after [DATE].

[ILBD and HNWCD only – remove the preceding paragraph and use this paragraph:]

We confirm that the Canada Revenue Agency (CRA) will defer action relating to the potential consequences of failing to comply that are described below in this letter until after [DATE].

[Include one of the following two sections (Program specific standard potential consequences or Standard potential consequences) describing the potential consequences for failing to comply.]

[For HNWCD and ILBD only: Program specific standard potential consequences]

If [Name of Corporation] does not fully comply by such date, the CRA may without further notice:

• Assess a penalty pursuant to paragraph 162(7)(b) of the Act of $25 for each day the failure continues, up to a maximum of $2,500.
• Initiate legal proceedings for a compliance order under section [231.7 of the Act] [289.1 of the Act]. Failure to comply with a compliance order could result in [Name of Corporation] being held in contempt of court.
• Seek a prosecution and a compliance order pursuant to section [238 of the Act] [326 of the Act], which states that a person who fails to comply with an information requirement is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to a fine of up to $25,000; or imprisonment for a term not exceeding 12 months, or both.

[For all other directorates/programs: Standard potential consequences]

If [Name of Corporation] does not fully comply by such date, legal proceedings may be initiated against [Name of Corporation] for a compliance order under section [231.7 of the Act][289.1 of the Act], without further notice. Failure to comply with a compliance order could lead to further legal proceedings against [Name of Corporation] for contempt of court.

If there are any questions, please contact me at [phone number].

Sincerely,

[Name of CRA official sending the request]

[Program Name]

[Tax Service Office and Address]

Website: Canada.ca/revenue-agency

Enclosure: Request letter dated [DATE]

D. Follow-up Request for Information (individual)

Instructions

Please review this instruction page before downloading and adapting Letter D, on the next page. These templates are for standard language only and may not meet your program’s formatting requirements for letters to taxpayers.

Program specific standard potential consequences

HNWCD and ILBD only: All correspondence citing the potential consequences of non-compliance must consistently include:

• 1) seeking a compliance order under sections 231.7 of the ITA
• 2) assessing penalties under paragraphs 162(7)(b) of the ITA
• 3) seeking a possible prosecution under subsections 238(1) of the ITA

HQ approval is not required to describe the potential consequences of using the program specific standard language in correspondence. A notification to HQ must be made of the intent to seek a compliance order. To capture data on the use of these penalties, a notification to HQ must be made of the intent to assess penalties, however, approval is not required. HQ approval is required before actioning a referral for prosecution.

Standard potential consequences

All other directorates/programs. CRA officials should review program specific guidance when considering additional consequences.

[Date]

[First Name, Last Name]

[Address Line 1]

[Address Line 2]

[City, Province, Postal Code]

Dear [Full name, without honorific, unless specifically requested by the correspondent]:

Re: Failure to comply with a request for information and documents for the [taxation year(s) / fiscal period(s), START DATE to END DATE]

Account number: [SIN]

Case number: [Integras case number]

We are writing further to the request for information and documents dated [DATE] (copy enclosed). The request was made pursuant to [subsection 231.1(1) of the Income Tax Act (the Act)] [subsection 288(1) of the Excise Tax Act (the Act)] for purposes related to the administration or enforcement of the Act. To date, we have [not received your response or we have received only a partial response] and you have failed to provide the following information and documents, which you were required to provide by [DATE]:

[Insert a table or list to clearly articulate the outstanding information and documents required that were not provided from the original Request for Information.]

[Include one of the following two sections (Program specific standard potential consequences or Standard potential consequences) describing the potential consequences for failing to comply.]

[For HNWCD and ILBD only: Program specific standard potential consequences]

If you do not fully comply with the request by [DATE], the Canada Revenue Agency may without further notice to you:

• Assess a penalty pursuant to paragraph 162(7)(b) of the Act of $25 for each day the failure continues, up to a maximum of $2,500.
• Initiate legal proceedings for a compliance order under section [231.7 of the Act] [289.1 of the Act]. Failure to comply with a compliance order could result in you being held in contempt of court.
• Seek a prosecution and a compliance order pursuant to section [238 of the Act] [326 of the Act], which states that a person who fails to comply with an information requirement is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to a fine of up to $25,000; or imprisonment for a term not exceeding 12 months, or both.

[For all other directorates/programs: Standard potential consequences]

If you do not fully comply with the request by [DATE], legal proceedings may be initiated against you for a compliance order under section [231.7 of the Act][289.1 of the Act] without further notice to you. Failure to comply with a compliance order could lead to further legal proceedings against you for contempt of court.

If you have any questions, please contact me at [phone number].

Sincerely,

[Name of CRA official sending the request]

[Program Name]

[Tax Service Office and Address]

Website: Canada.ca/revenue-agency

Enclosure: Request letter dated [DATE]

Footnotes