INCOME TAX |
European Marine Contractors Ltd. v. Canada (Customs and Revenue Agency)
T-285-02
2004 FC 114, Rouleau J.
26/1/04
9 pp.
Enforcement--Judicial review of Canada Customs and Revenue Agency's (CCRA) Notice of Requirement that applicant provide foreign-based information and documents-- Notice required applicant to produce all documents as to 1999 fiscal year, pursuant to Income Tax Act (Act), s. 231.6(4)-- Applicant, incorporated in United Kingdom in 1988, acts as sub-sea pipeline construction company--For tax purposes, applicant resident of United Kingdom and head office located in South London--Between January and April 1999, applicant performed certain contract work in Canada--Applicant did not rent office space in Canada but had entered into temporary living arrangements for employees involved in project, consisting primarily of six-month leases on apartments--In September 2000, CCRA informed applicant wished to conduct audit in relation to applicant's 1999 taxation year--Applicant refused to allow audit--On December 6, 2001, Notice of Requirement to provide foreign-based information or documents issued by respondent--Applicant submits Notice far-reaching and includes information or documentation which has no link to determination of applicant's liability to Canadian taxation, if any--Test whether information relevant to administration of Act: Merko v. M.N.R., [1991] 1 F.C. 239 (T.D.)--CCRA's duty to verify applicant's tax liability which necessarily requires production of applicant's books, records --If, after examination of documents, they have no impact on Canadian tax liability and if some information gleaned from audit proves irrelevant, it shall be treated as such but, before such determination can be made, books and records must be made available--Requirement to provide information not abuse of process--Application dismissed--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 231.6(4).