Cohen – Federal Court refuses to provide a s. 231.7 compliance order where the taxpayers seemed cooperative but did not provide all the requested documents

CRA made an extensive demand for information (covering eight pages) pursuant to s. 231.1(1) to the individual respondent and related corporations. They then delivered some of the requested documents.

After noting that, per s. 231.5(2), a person must do everything required by ss. 231.1 and 231.2 “unless the person is unable to do so”, so that such “person must demonstrate reasonable efforts to satisfy the Court on a balance of probabilities that they are unable to produce the information” (para. 45), Saint-Fleur J went on to decline to grant a s. 231.7 compliance order, stating:

Here, the Respondent has provided a detailed list of all the documents and information provided by him and by the other Respondents respecting each item requested in the requests for information by the CRA. When an item was not delivered, the Respondent provided detailed justification and explanation of effort as to why it has not been delivered. Furthermore, the Respondents have provided … copies of 766 electronic files … .

… Considering the above and in light of the seriousness of the consequences for non-compliance … I am unable to conclude that the Respondents were uncooperative.

Neal Armstrong. Summary of Canada (National Revenue) v. Cohen, 2025 FC 2012 under s. 231.7.