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ARTICLE · 07 APRIL 2022

Tax Lawyer Analysis: CRA's Broad Powers To Compel Third Party Information Under Section 231.2 Is Not Without Limits

Rotfleisch & Samulovitch P.C.
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The CRA derives its power to conduct tax audits against taxpayers under section 231.1 of the Income Tax Act.

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David Rotfleisch
David Rotfleisch
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Section 231.2: CRA's Broad Powers to Compel Information from Third Parties

The CRA derives its power to conduct tax audits against taxpayers under section 231.1 of the Income Tax Act. The CRA can compel a taxpayer to provide books and records and allow a CRA representative to enter premises where a business is carried on. Moreover, taxpayers are required to provide reasonable assistance and to provide answers to reasonable questions to the CRA tax auditor. Under section 231.2, the CRA even has broad powers to demand information about the investigated taxpayer from third parties for tax audit purposes. In this article, we will discuss about the CRA's power to compel information from third parties.

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