Case Comment – MNR v Roofmart Ontario Inc. ("Roofmart")

Introduction: CRA Powers to Acquire Information About Taxpayers and Third Parties Known to the Taxpayer

The CRA has general powers to require persons to provide information related to a tax audit however these general powers are limited, such that, the CRA cannot require persons to provide third party documents without judicial authorization. A Canadian tax lawyer can help protect yourself from the CRA request for third party information by arguing against judicial authorization. In this case, the CRA is seeking information from the taxpayer about their clients who are residential and commercial contractors. The taxpayer unsuccessfully argued against the judicial authorization requirement to provide information during a tax audit to third parties. The taxpayer, Roofmart, sought to prevent the CRA from requiring it to provide information related to third parties, specifically its contractor customers. The CRA applied for judicial authorization under section 231.2(3) of