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ARTICLE · 14 SEPTEMBER 2023

The Canada Revenue Agency's Expanded Audit Powers: What Taxpayers Need To Know

The Canada Revenue Agency (CRA) recently made headlines when it asked Shopify for six years' worth of records for more than 120,000 of its Canadian customers.

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Introduction

The Canada Revenue Agency (CRA) recently made headlines when it asked Shopify for six years' worth of records for more than 120,000 of its Canadian customers. This broad request follows on the heels of the CRA's significantly expanded powers under Bill C-32, which came into force on December 15, 2022.

This article is Part I of a series that discusses the amendments to the CRA's audit powers and the implications for taxpayers. In this part, we discuss the CRA's ability to compel certain individuals for oral interviews, and when (and why) to engage a lawyer.

Amendments to the Act

Prior to Bill C-32, the CRA had no legal authority to compel taxpayers or their employees to submit to oral interviews. This was confirmed in Canada (National Revenue) v Cameco Corporation, 2019 FCA 67 (Cameco),Cameco, in which the Federal Court of Appeal held that the CRA's pre-Bill C-32 audit powers, while expansive, could not be interpreted to confer "a general power

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About Dentons

Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries. www.dentons.com

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Specific Questions relating to this article should be addressed directly to the author.

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