Minister of National Revenue v. Cornfield, (2007) 312 F.T.R. 81 (FC)

• Judge: Snider, J.
• Court: Federal Court (Canada)
• Case Date: April 17, 2007
• Jurisdiction: Canada (Federal)
• Citations: (2007), 312 F.T.R. 81 (FC);2007 FC 436

MNR v. Cornfield (2007), 312 F.T.R. 81 (FC)

MLB headnote and full text

Temp. Cite: [2007] F.T.R. TBEd. MY.019

Minister of National Revenue (applicant) v. S. Bruce Cornfield (respondent) and The Law Society of British Columbia (intervenor)

(T-2034-06; 2007 FC 436)

Indexed As: Minister of National Revenue v. Cornfield

Federal Court

Snider, J.

April 25, 2007.

Summary:

Cornfield was a lawyer and a member of the Law Society of British Columbia. His client, Child Construction Ltd. (CCL), owed the federal Crown GST in the amount of $53,382.29.The Minister of National Revenue issued a requirement for information pursuant to s. 289(1) of the Excise Tax Act requiring Cornfield to provide a statement of adjustments, a copy of the direction to pay, and copies of the cancelled cheques, with respect to a property transaction which Cornfield had handled for CCL. Cornfield refused to provide the information and documents on the basis that, absent instructions to the contrary from his client, he had to take the position that the requested information might be subject to a solicitor-client privilege. The Minister asked the court to issue a compliance order under s. 289.1 of the Excise Tax Act requiring Cornfield to provide the documents and information.

The Federal Court issued a compliance order.

Barristers and Solicitors - Topic 1626

Relationship with client - Duty of confidentiality (or professional secrecy) - Disclosure to governments - [See Sales and Service Taxes - Topic 5210 ].

Barristers and Solicitors - Topic 1644

Relationship with client - Confidential communications - Lawyer's accounts - [See Sales and Service Taxes - Topic 5210 ].

Sales and Service Taxes - Topic 5210

Goods and services tax (incl. harmonized sales tax) - Administration, collection and enforcement - Requirement to provide documents or information - Cornfield was a lawyer and a member of the Law Society of British Columbia - His client, Child Construction Ltd. (CCL), owed the federal Crown GST in the amount of $53,382.29 - The Minister of National Revenue issued a requirement for information pursuant to s. 289(1) of the Excise Tax Act requiring Cornfield to provide a statement of adjustments, a copy of the direction to pay, and copies of the cancelled cheques, with respect to a property transaction which Cornfield had handled for CCL - Cornfield refused to provide the information and documents on the basis that, absent instructions to the contrary from his client, he had to take the position that the requested information might be subject to a solicitor-client privilege - The Minister asked the court to issue a compliance order under s. 289.1 of the Excise Tax Act requiring Cornfield to provide the documents and information - The Federal Court issued a compliance order - In the context of a real estate transaction, cheques from a solicitor's account and a statement of adjustments were not subject to solicitor-client privilege - The court was also not persuaded that the evidentiary record established a need for further procedural steps for the protection of solicitor-client privilege - There was no need to add a requirement to serve the taxpayer or to provide a sealed copy of the documents to the court, unless such procedures were warranted on the facts of a particular application.

Cases Noticed:

Minister of National Revenue v. Norris, [2002] 3 C.T.C. 346; 2002 CarswellNat 1250 (F.C. Protho.), consd. [para. 15].

Wirick, Re, [2005] B.C.T.C. 1821; 51 B.C.L.R.(4th) 193; 2005 BCSC 1821, refd to. [para. 19].

Minister of National Revenue v. Vlug, [2006] F.T.R. Uned. 632; 2006 D.T.C. 6285; 2006 FC 86, refd to. [para. 19].

Minister of National Revenue v. Reddy, [2006] F.T.R. Uned. 165; 146 A.C.W.S.(3d) 568; 2006 FC 277, refd to. [para. 19].

Minister of National Revenue v. Singh Lyn Ragonetti Bindal LLP, [2005] F.T.R. Uned. B10; [2006] 1 C.T.C. 113; 2005 FC 1538, refd to. [para. 19].

Statutes Noticed:

Excise Tax Act, R.S.C. 1985, c. E-15, sect. 289, sect. 289.1 [Appendix A]; sect. 293(1) [para. 13].

Authors and Works Noticed:

Law Society of British Columbia, Professional Conduct Handbook, c. 5, paras. 13, 14 [para. 22].

Counsel:

Elizabeth (Lisa) McDonald, for the applicant;

Susan M. Coristine, for the respondent;

Richard C.C. Peck, Q.C., for the intervenor.

Solicitors of Record:

John H. Sims, Q.C., Deputy Attorney General of Canada, Ottawa, Ontario, for the applicant;

Coristine Woodall, Vancouver, British Columbia, for the respondent;

Peck and Company, Vancouver, British Columbia, for the intervenor.

This application was heard on April 17, 2007, at Vancouver, British Columbia, before Snider, J., of the Federal Court, who delivered the following decision on April 25, 2007.