Minister of National Revenue v. BP Canada Energy Co., (2015) 482 F.T.R. 150 (FC)

• Judge: Campbell, J.
• Court: Federal Court (Canada)
• Case Date: May 11, 2015
• Jurisdiction: Canada (Federal)
• Citations: (2015), 482 F.T.R. 150 (FC);2015 FC 714

MNR v. BP Can. Energy (2015), 482 F.T.R. 150 (FC)

MLB headnote and full text

Temp. Cite: [2015] F.T.R. TBEd. JL.005

Minister of National Revenue (applicant) v. BP Canada Energy Company (respondent)

(T-908-12; 2015 FC 714)

Indexed As: Minister of National Revenue v. BP Canada Energy Co.

Federal Court

Campbell, J.

June 5, 2015.

Summary:

The Minister of National Revenue made a demand pursuant to s. 231.1(1) of the Income Tax Act, requiring the respondent (BP Canada), a publicly traded company, to provide records that described its uncertain tax positions to assist the Minister in conducting its present and future tax audit responsibilities. BP Canada objected to providing the records. The Minister applied under s. 231.7(1) of the Act to obtain an order compelling BP to provide the records.

The Federal Court allowed the application.

Income Tax - Topic 9210

Enforcement - Records and books - [See Income Tax - Topic 9256 ].

Income Tax - Topic 9253

Enforcement - Production of information - Information which must be produced - [See Income Tax - Topic 9256 ].

Income Tax - Topic 9256

Enforcement - Production of information - Demand of information - Compliance - The Minister of National Revenue made a demand pursuant to s. 231.1(1) of the Income Tax Act, requiring the respondent (BP Canada), a publicly traded company, to provide records that described its uncertain tax positions to assist the Minister in conducting its present and future tax audit responsibilities - BP Canada objected - The Minister applied under s. 231.7(1) of the Act to obtain an order compelling BP to provide the records - The Federal Court allowed the application - The court held that (1) the Minister was entitled to compel BP Canada to disclose the Issues Lists for the purpose of expediting the Minister's future audits - (2) The court should not exercise its discretion not to compel the Issues Lists where: (i) it rejected BP Canada's argument that the audit was a fishing expedition (an audit was not an expedition); and (ii) no supportable finding could be made on the existing evidence that the Minister's officials made the demands for the Issues List in bad faith - (3) The Minister's demand for the Issues Lists was not unfair to BP Canada - While BP Canada was a taxpayer in a different position from taxpayers who did not have contingent liability reserves, it was in the same position as others who did have contingent liability reserves - This form of distinction did not constitute inequitable treatment - The Minister's policy did not discriminate - All taxpayers were subject to the application of ss. 231.1(1) and 231.7.

Cases Noticed:

Tower et al. v. Minister of National Revenue et al., [2004] 1 F.C.R. 183; 310 N.R. 280; 2003 FCA 307, refd to. [para. 26].

Minister of National Revenue v. Greater Montréal Real Estate Board, [2008] 3 F.C.R. 366; 371 N.R. 7; 2007 FCA 346, refd to. [para. 30].

Statutes Noticed:

Income Tax Act, R.S.C. 1985 (5th Supp.), c. 1, sect. 231.1(1), sect. 231.7(1) [para. 1 et seq., Appendix].

Counsel:

Henry Gluch and Margaret McCabe, for the applicant;

Al Meghi, Edward Rowe, Pooja Samtani and Andrew Boyd, for the respondent.

Solicitors of Record:

William F. Pentney, Deputy Attorney General of Canada, Toronto, Ontario, for the applicant;

Osler, Hoskin & Harcourt, LLP, Toronto, Ontario, for the respondent.

This application was heard at Toronto, Ontario, on May 11, 2015, by Campbell, J., of the Federal Court, who delivered the following decision at Ottawa, Ontario, on June 5, 2015.