A CRA “joint director” of the “Special Enforcement Program” and the “Criminal Investigations Program” heard that an anonymous informant had alleged that a taxpayer was evading taxes with the assistance of a highly-placed CRA official. The director ordered a civil audit, which gathered information, including information not normally gathered during an audit. The file was then referred to the CRA police, which used the information obtained on the audit to obtain search warrants. Revenue Quebec used the evidence seized to press charges. The Quebec Court of Appeal held that the trial judge was right to exclude the evidence obtained by the CRA under the warrants because, using the Jarvis factors, it was evident that the CRA had used its audit powers to obtain information for a criminal investigation. BT Céramiques inc. c. Agence du revenu du Québec, 2020 QCCA 402.
Anthony Lorrain, “BT Céramiques: Audits Versus Criminal Investigations” Canadian Tax Focus 10:4 (November 2020)
