The Minister of National Revenue applied for judicial authorization to impose a requirement on Bambora Inc. to provide information about unnamed persons under subsections 231.2(3) of the Income Tax Act and 289(3) of the Excise Tax Act.
Bambora, a Canadian company, provides mobile payment device options and processing services. The Canada Revenue Agency (CRA) targeted sectors using mobile payment processors for potential non-compliance with tax laws.
Legal Issues:
Information Requirement: Assessing whether the Minister could lawfully require Bambora to provide information on its Canadian merchant clients.
Compliance Verification: Determining the necessity of this information for verifying the merchants' compliance with tax duties and obligations.
Judgment:
Judge: Justice Andrew D. Little
Decision: The Court authorized the Minister to impose the requirement on Bambora.
Reasoning:
The Court concluded that Bambora’s merchants were an ascertainable group, and the information request was necessary to verify compliance with tax laws.
Bambora did not oppose the application and filed no evidence or submissions.
Costs: There was no order as to costs.
Conclusion:
The Federal Court allowed the Minister to enforce the requirement for Bambora to provide information about its merchants. This decision highlights the government's role in ensuring compliance with tax regulations and the ability of authorities to obtain necessary information from financial service providers.
