| Citation: |
Murphy v. M.N.R., 2009 FC 1226, [2010] 1 F.C.R. D-3 |
T-555-08 |
Income Tax
Practice
Applicants challenging requirements for information (RFIs) issued under Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1—RFIs at issue signed by Wayne Fjoser, Team Leader in Special Enforcement Program at Canada Revenue Agency—Authority to issue RFIs, power of Minister to do so grounded in Act, s. 231.2(1)—Pursuant to Act, s. 220(2.01), possible for Minister to delegate this power to several upper levels of bureaucracy, such as Director, but not to position of Team Leader—Fjoser’s director purporting to delegate her powers to him—However, Act, s. 220(2.01) not permitting such further delegation of powers—This view supported by delegatus non potest delegare (a delegate cannot delegate) maxim—Nothing in legislation, delegation scheme supporting sub-delegation—RFIs issued without proper legal authority, thus invalid—However, assuming Fjoser had proper delegated authority, Court addressing other grounds of judicial review, i.e. that RFIs not materially related to administration, enforcement of Act—Absent evidence to contrary, Minister presumed to be validly issuing RFIs—Having chosen most obtrusive method of service, respondent surrendering control of process to police, actively engaging in breaches of confidentiality requirements of Act—Under guise of service of RFIs, police engaging in activities of information gathering not otherwise available except by search warrant—Flagrant contravention of privacy provision of Act, s. 241(1) seriously calling into question goal of issuance of RFIs—Because no serious, genuine inquiry into tax liabilities of applicants, RFIs should be quashed—Application allowed.
Murphy v. M.N.R. (T-555-08, 2009 FC 1226, Phelan J., judgment dated December 2, 2009, 35 pp.)