INCOME TAX |
Practice |
M.N.R. v. Toronto Dominion Bank
T-2469-03
2004 FC 169, Tremblay-Lamer J.
30/1/04
13 pp.
Application for order pursuant to Income Tax Act (ITA), s. 231.7 directing respondent to provide applicant with information sought by peremptory requirement sent by M.N.R. to manager, Toronto Dominion Bank--Respondent decided not to act on requirement and still refusing to provide information requested in peremptory requirement--Where third party being required to provide information or documents relating to one or more unnamed persons, Minister must first obtain authorization of judge: that was case here-- Minister seeking information on accounts of third parties not previously identified--Fact information sought could potentially prove relevant in investigation being conducted regarding tax debtor of no importance--ITA, s. 231.2(2) clear: prior authorization necessary--Difficult to obtain authorization from judge where latter must be satisfied information required to determine whether person or persons in group have observed some duty or obligation imposed by ITA--Since Minister not conducting investigation into holder of account, condition therefore not met--In spite of this, s. 232.2(2) does not give rise to such a broad interpretation--In M.N.R. v. Sand Exploration Ltd., [1995] 3 F.C. 44 (T.D.), Rothstein J. stated limiting interpretation continued to be valid for interpreting s. 232.2--Wording of s. 232.2 clear and does not permit interpretation that disregards literal meaning in favour of interpretation considered more likely to advance objectives of Act, which might be possible in case of less clear legislation--In context of case at bar, in which obligation of confidentiality imposed on bank by Bank Act, s. 244(d) only clear provision or order of Court can authorize bank to disregard obligation--ITA, s. 232.2(1) may be viewed as clear provision authorizing bank to disclose information on named person--S. 231.2(2) clearly requires judicial authorization when information concerns unnamed person--Impossible to find implicit exception to recognize difficulty in which applicant stands--Bank justified in refusing to comply with peremptory requirement of December 19, 2003--Motion dismissed--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, ss. 231.2 (as am. by S.C. 1988, c. 55, s. 174; 1996, c. 21, s. 58; 2000, c. 30, s. 176), 231.7 (as am. by S.C. 2001, c. 17, s. 183)--Bank Act, S.C. 1991, c. 46, s. 244(d).