Sunita Doobay, “The MNR’s Audit Powers” Canadian Tax Highlights 27:3 (March 2019) reviews three important recent cases on CRA audit powers, namely Cameco, 2017 FC 763 (power to require oral interviews), BP Canada Energy Company, 2017 FCA 61 (power to compel production of tax accrual working papers), and Atlas Tube Canada ULC, 2018 FC 1086 (power to compel production of a due diligence report).
Postscript July 10, 2019 The CRA has stated that it will not appeal Cameco and that it will continue to request, but not attempt to compel, interviews with employees. The CRA has also released AD-19-02R, “Obtaining Information for Audit Purposes”, which outlines CRA audit policy after Cameco and BP Canada. John G. Bassindale and Robert G. Kreklewetz, “FCA Restricts CRA Interviews of Employees” Tax for the Owner Manager 19:3 (July 2019)
Postscript July 13, 2019 See also Kevin O’Reilley and Fred O’Riordan “Further Clarity Concerning the CRA’s Power To Compel Oral Interviews” Canadian Tax Highlights 27:6 (June 2019) and Timothy Fitzsimmons and Angelo Bertolas “CRA Guidance on Obtaining Taxpayer Information” Canadian Tax Highlights 27:6 (June 2019)
