Tax Court of Canada


Minister merely carrying on fishing expedition

Motion by Minister for order granting leave to examine representative of accounting firm or former partner of law firm, pursuant to Rule 99 of Tax Court of Canada Rules (General Procedure). Motion dismissed. Stringent requirements of Rule 99 were not met. Minister failed to establish that it had been unable to obtain information from either former partner or firm, and what information was missing from these disclosures. Further examination sought would cause undue delay and unreasonable expenses. Taxpayer failed to establish that either firm or former partner had information that was relevant to material issue in appeal. Crown could easily perform review of documents itself without discovery it sought. There was nothing to indicate that anyone currently associated with firm had any independent knowledge of audits of joint venture in issue except that which was reflected in records already provided. Minister was merely carrying on fishing expedition.

McLarty v. Canada

(Mar. 8, 2012, T.C.C., Margeson J., File No. 98-1659(IT)G) 211 A.C.W.S. (3d) 727 (8 pp.).

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