Federal Court refuses to authorize abusive “fishing expedition” by Canada Revenue Agency
A recent court case decided that there should be limits to the Canada Revenue Agency’s intrusiveness and powers. The CRA attempted to obtain information from a third-party. In this case, they wanted information from Hydro-Quebec about their business customers, and the company fought back. The court ruling agreed that the CRA shouldn’t be allowed to obtain the information it wanted on these customers as it was determined to have no valid criteria. The ruling is a win for taxpayers, and serves as a reminder that it is the courts, not the CRA, that sets the limits on its powers.
“This case highlights the CRA’s attempt to construe its powers in the broadest possible terms. The Court found the CRA’s request was “a full-fledged fishing expedition”, of “unprecedented magnitude”, of “practically unlimited scope” and “a complete lack of consideration for the invasion of privacy and the consequences for all taxpayers involved in the request.””