Cases
Del Zotto v. Canada, 97 DTC 5145, [1997] 2 CTC 103 (FCTD)
An enquiry under s. 231.4 into the financial affairs of a taxpayer ("Del Zotto") did not violate s. 7 of the Charter given that Del Zotto was not subpoenaed to attend or to give evidence or produce documents at the enquiry, and that the lawyer and business executive who was served with such a subpoena did not (unlike Del Zotto) face criminal charges under the Act. Accordingly, there was no violation of the "case to meet" and "right to silence" principles.
The requirement to appear and to bring documents was not sufficiently intrusive to justify imposing the Hunter standards under the aegis of section 8 of the Charter.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Charter (Constitution Act, 1982) - Section 7 | 109 |
Administrative Policy
87 C.R. - Q.39
RC is prepared to use the inquiry process in those situations where the taxpayers have been uncooperative or unwilling to supply the information that RC feels is necessary.
Subsection 231.4(1) - Inquiry
Cases
Del Zotto v. Canada, 97 DTC 5328, [1997] 3 C.T.C. 199 (FCA)
S.231.4 and subpoenas issued under it were of no force and effect because s. 231.4 violated s. 8 of the Charter.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Charter (Constitution Act, 1982) - Section 8 | s. 231.4 violated Charter | 23 |
Administrative Policy
30 December 2024 Internal T.I. 2024-1031721I7 F - Notion de déclarant et statut d’Indien
CRA found that an “Indian” whose income earned during a taxation year is exempt pursuant to the Indian Act would be a “reporting entity” within the meaning of ss. 233.3 and 233.4 of the ITA, and thus be subject to the obligation to file T1135 and T1134 forms, and to penalties for failures to do so. The phrase “whose total taxable income for the year is exempt from the tax under Part I” refers to persons whose income is (absolutely) exempt pursuant to s. 149(1) and does not encompass a person (such as a status Indian) whose income from a particular source (here, income earned on a reserve) is excluded from the individual’s income.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 233.3 - Subsection 233.3(1) - Specified Canadian Entity - Paragraph (a) - Subparagraph (a)(iii) | exemption of income under the Indian Act does not render the individual as exempt from Part I tax, so that T1135/ T1134 reporting is required | 291 |
| Tax Topics - Other Legislation/Constitution - Federal - Indian Act - Section 87 | individuals whose income is exempted under the Indian Act nonetheless are subject to the general T1135 and T1134 reporting obligations | 131 |
Subsection 231.4(6) - Rights of person whose affairs are investigated
See Also
Guay v. Lafleur, 64 DTC 5218, [1964] CTC 350, [1965] S.C.R. 12
An investigation under s. 126(4) of the pre-1972 Act was a purely administrative matter which did not affect the taxpayer (the taxpayer's rights not being affected until an assessment is made). Accordingly, the taxpayer had no right to attend or be represented at the inquiry by counsel.