[2013] 2 F.C.R. D-6
Income Tax
Practice
Appeal from Federal Court decision (2011 FC 1249) cancelling authorizations previously obtained by appellant under Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 231.2(3) requiring respondents to produce information, documents relating to customers of “10-8” insurance plan—Federal Court finding that appellant not disclosing significant amount of relevant evidence on ex parte application, failing to establish that authorizations made to verify compliance with Act—Appellant submitting that reviewing judge under Act, s. 231.2(6) not having discretion to set aside authorization on ground that appellant not making full, frank disclosure of relevant information—Principal issue jurisdiction of Federal Court on ex parte application under s. 231.2(3), on review under Act, s. 231.2(6)—Federal Court having power herein to cancel authorizations it granted when engaged in review under subsection 231.2(6) on ground that appellant not making full, frank disclosure on ex parte application—Judge’s task under s. 231.2(6) not as limited as appellant suggesting—Ss. 231.2(3),(6) providing that judge “may” do something—Plain wording of s. 231.2(6) showing that reviewing judge free to go beyond statutory preconditions, exercise discretion regarding whether authorization should be left in place—Ss. 231.2(3),(6) expressing dual purpose of enforcement, fair treatment of persons subjected to appellant’s investigative powers—Judicial oversight necessary—To extent possible, reviewing judge under s. 231.2(6) same judge who issued authorization under s. 231.2(3)—Review under s. 231.2(6) thus including discretionary element, otherwise authorizing judge powerless to act if appellant withholding important information under s. 231.2(3)—Breach of obligation to make full, frank disclosure of information abuse of process—Ss. 231.2(3),(6) not constituting complete code, not ousting Court’s ability to redress such abuse of process—Federal Courts’ power to control integrity of processes plenary power existing outside statutory grant, part of core function—Appeal dismissed.
Canada (National Revenue) v. RBC Life Insurance Company (A-447-11, 2013 FCA 50, Stratas J.A., judgment dated February 21, 2013, 19 pp.)