The Canada Revenue Agency ("CRA") audits taxpayers to
ensure compliance with the Income Tax Act
("Act"). In completing an audit, the CRA has broad powers
to request documents and information; to examine property or
processes; and to inspect books and records. However, the CRA's
power to require a taxpayer or its employees to attend interviews
by CRA auditors remains uncertain.
In Minister of National Revenue v. Cameco
Corporation, the Federal Court of Appeal ("FCA")
had to decide whether the CRA's audit powers include requiring
employees to attend interviews to answer CRA auditors'
questions. The circumstances of the CRA's interview request are
important.
During a transfer pricing audit, the CRA delivered a letter to
Cameco requesting interviews with 25 of its employees. The
employees chosen were from Cameco, and its U.S., European and
Barbadian subsidiaries. The subject of the interviews were the
facts relating to the years being audited (2008-2010):
