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ARTICLE · 15 NOVEMBER 2024

Reminder: Accountant-Client Privilege Does Not Exist

In the course of a tax appeal, the taxpayer and the Canada Revenue Agency (CRA) are entitled to inspect certain documents that are in the other party's possession...

CanadaLitigation, Mediation & Arbitration

In the course of a tax appeal, the taxpayer and the Canada Revenue Agency (CRA) are entitled to inspect certain documents that are in the other party's possession, control or power and that are relevant to any matter in question in the appeal.1 An exception to this is any document that is subject to solicitor-client privilege. Generally, documents produced by taxpayers' accountants must be disclosed.

Solicitor-client privilege is a fundamental right in Canada and applies to communications between a lawyer and client for the purpose of seeking or giving legal advice that are intended to be confidential. Solicitor-client privilege allows lawyers and clients to communicate openly about a client's legal affairs to ensure the lawyer is fully informed of the client's circumstances and can properly advise the client. When a communication is privileged, it need not be provided in response to a demand for it from any third party, including the CRA, and including in the

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