In Canada (National Revenue) v Cohen, 2025 FC 2012, the Court dismissed a Crown application for a compliance order because the taxpayer had demonstrated, on a balance of probabilities, that he had done everything reasonably possible to obtain the documents in question. The taxpayer had provided a detailed description of the efforts undertaken to obtain the required documents.
The authors suggest the Court’s approach in Cohen was informed by the potentially severe consequences for the taxpayer of non-compliance. They contend the same concern will influence courts as they consider CRA notices of non-compliance as proposed by the 2025 budget.
Rob Kreklewetz and Peter Krol “CRA Information Demands and Expected New Powers” Tax for the Owner-Manager 26:2 (April 2026)
