Burnett v. M.N.R.
T-1208-98
Evans J.
13/11/98
9 pp.
Application for determination of whether solicitor-client privilege in certain documents-Applicant solicitor for TEW Investments Ltd., André Desmarais-Served with requirement issued by Minister of National Revenue pursuant to Income Tax Act, s. 231.2(1) to provide all file, working papers, trust ledgers, cancelled cheques and memoranda pertaining to cheque No. 07552 dated November 7, 1997 for $97,000.42 issued by law firm to order of TEW Investments-S. 232 exempting from right to refuse to disclose communication on ground of privilege, "accounting record of a lawyer, including any supporting voucher or cheque"-Conflict in case law as to whether cheque authorization from law firm subject of solicitor-client privilege, or falling within statutory exemption in s. 232(1)-Applicant relying on Taves (K.E.G.) v. Canada, [1995] 2 C.T.C. 347 (B.C.S.C.) wherein Baker J. held cheque requisition by law firm covered by professional privilege, not included in "accounting record" exception-As decision of British Columbia Supreme Court, and this case proceeding in that Province, such clear pronouncement usually regarded as dispositive, even if not binding on judge of Supreme Court of British Columbia-But this conclusion relied upon Playfair Developments Ltd v. D/MNR, [1985] 1 CTC 302 (Ont. S.C.) even though Galligan J. clearly came to opposite conclusion (i.e. cheque requisitions supporting vouchers for lawyer's accounting record)-Galligan J.'s reasoning agreed with, and on plain meaning of s. 232(1), cheque requisition not subject of solicitor-client privilege-Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 231.2(1), 232.