Minister of National Revenue v. Jakabfy, (2013) 435 F.T.R. 158 (FC)

• Judge: Zinn, J.
• Court: Federal Court (Canada)
• Case Date: June 24, 2013
• Jurisdiction: Canada (Federal)
• Citations: (2013), 435 F.T.R. 158 (FC);2013 FC 706

MNR v. Jakabfy (2013), 435 F.T.R. 158 (FC)

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[French language version follows English language version]

[La version française vient à la suite de la version anglaise]

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Temp. Cite: [2013] F.T.R. TBEd. JL.002

The Minister of National Revenue (applicant) v. Joseph R. Jakabfy (respondent)

(T-1040-13; 2013 FC 706; 2013 CF 706)

Indexed As: Minister of National Revenue v. Jakabfy

Federal Court

Zinn, J.

June 25, 2013.

Summary:

The Minister of National Revenue sought an order under s. 231.7 of the Income Tax Act requiring Jakabfy, a lawyer, to provide certain documents and information about his clients, the Lavallees, to the Minister. At issue was whether the documents were subject to solicitor-client privilege.

The Federal Court held that the documents were not subject to solicitor-client privilege and ordered Jakabfy to provide the documents to the Minister.

Barristers and Solicitors - Topic 1626

Relationship with client - Duty of confidentiality (or professional secrecy) - Disclosure to governments - The Minister of National Revenue sought an order under s. 231.7 of the Income Tax Act requiring Jakabfy, a lawyer, to provide certain documents and information about his clients, the Lavallees, to the Minister - The Minister was investigating the Lavallees with respect to the sale of a property and how the proceeds of the sale were distributed - At issue was whether the documents were subject to solicitor-client privilege - The Federal Court held that the documents were not subject to solicitor-client privilege and ordered Jakabfy to provide the documents to the Minister - Section 232 of the Act defined solicitor-client privilege and the protection applied to communications involving the seeking and providing of legal advice and did not apply to documents that were evidence of an act or transaction rather than a communication - Further, the court had ordered the production of information and documents relating to financial transactions directed through a solicitor's trust account, such as cheques, statements of adjustment, and account ledgers, on numerous occasions.

Evidence - Topic 4237

Witnesses - Privilege - Lawyer-client communications - Documents - General - [See Barristers and Solicitors - Topic 1626 ].

Income Tax - Topic 9253

Enforcement - Production of information - Information which must be produced - [See Barristers and Solicitors - Topic 1626 ].

Cases Noticed:

Minister of National Revenue v. Currie, [2008] F.T.R. Uned. 178; 2008 FC 237, refd to. [para. 8].

Minister of National Revenue v. Singh Lyn Ragonetti Bindal LLP, [2005] F.T.R. Uned. B10; 2005 FC 1538, refd to. [para. 11].

Minister of National Revenue v. Reddy, [2006] F.T.R. Uned. 165; 2006 FC 277, refd to. [para. 12].

Minister of National Revenue v. Singh Lyn Ragonetti Bindal LLP, [2005] F.T.R. Uned. B10; 2005 FC 1538, refd to. [para. 12].

Minister of National Revenue v. Cornfield (2007), 312 F.T.R. 81; 2007 FC 436, refd to. [para. 12].

Chambre des notaires du Québec c Canada (Procureur général), [2010] J.Q. 8868; 2010 QCCS 4215, dist. [para. 13].

Counsel:

Margaret Nott and Angela Shen, for the applicant;

Amy Ohler, for the respondent.

Solicitors of Record:

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

Fenton, Smith Barristers, Toronto, Ontario, for the respondent.

This case was heard at Toronto, Ontario, on June 24, 2013, by Zinn, J., of the Federal Court, who delivered the following judgment on June 25, 2013.