INCOME TAX |
Practice |
Fraser Milner Casgrain v. M.N.R.
T-510-02
2002 FCT 912, Dawson J.
26/8/02
13 pp.
Application to quash certain Requirements to Provide Information issued by Minister pursuant to Income Tax Act, s. 231.2(1)(a), (b)--Applicant Schmunk director and officer of three companies--Applicant law firm providing advice to Schmunk--As of March 1998, one of Schmunk's companies and another company entered into general partnership agreement--Schmunk's original three companies audited by CCRA in connection with reorganization which occurred around March 1998--Minister served Schmunk and law firm with nine Requirements--Three Requirements demanding production of sale strategy memorandum referred to in certain law firm invoices--Six Requirements demanding production of certain tax planning documents--Application allowed respecting sales strategy memorandum Requirements and dismissed respecting tax planning Requirements--Compliance with sale strategy memorandum Requirements impossible as sale strategy memorandum not referred to in those invoices listed in Requirements--Regarding tax planning Requirements, relevance to particular issue not prerequisite-- Sufficient that material may be relevant to determination of taxpayer's tax liability--While purpose test of s. 245(3) objective, when applying purpose test, Court will look to all relevant facts, circumstances to determine intent at time transactions carried out--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, ss. 231.2(1)(a), (b), 245(3).