Canada ( Attorney General ) v. Bassermann
A-499-93
Mahoney J.A.
13/4/94
6 pp.
Application for judicial review of Tax Court decision allowing taxpayer's appeal by reason of MNR's failure to comply with order directing production of all documents in MNR's possession or control relating to matter within scope of proceeding -- Respondent, lawyer, assessed Unemployment Insurance premiums, penalties and interest in respect of employment of persons engaged by him from time to time through secretarial service -- Disputed assessments, took appeal to Tax Court and applied for discovery -- Tax Court made order allowing him to examine officer of Department of National Revenue to examine and required officer to make discovery of all of papers in MNR's possession or control relating to matter within scope of proceeding -- Pursuant to order, respondent demanded production of personal income tax returns of 5 of employees supplied by secretarial service -- MNR sought consent of individuals -- Three refused and MNR refused to produce returns -- Respondent's appeal allowed by reason of MNR's failure to comply with order -- Order made pursuant to Tax Court of Canada Rules of Procedure respecting the Unemployment Insurance Act, R. 18 -- Words "relating to any matter in question" in R. 18 broad enough to support order made and words "relating to the matter within the scope of this proceeding" in order broad enough to require production of tax returns in issue -- Not necessary to be relevant to any issue to be resolved in litigation; only need to relate to matter in question -- Given importance of confidentiality to viability of Canada's self-assessing income tax system, desirable to ensure taxpayer have opportunity to assert it -- Order can be made without taxpayer knowing his return required to be disclosed in its entirety to business connection -- Public policy arguments provide no excuse for failure or refusal to obey order and no basis for finding error by Tax Court Judge -- Application dismissed -- Tax Court of Canada Rules of Procedure respecting the Unemployment Insurance Act, SOR/90-690, R. 18.