The Minister sought information on Helcim Inc.'s Canadian merchants to verify compliance with tax duties and obligations.
Helcim provides mobile payment device options and services.
The Minister's request was based on subsections 231.2(3) of the Income Tax Act (ITA) and 289(3) of the Excise Tax Act (ETA).
Legal Issues:
Ascertainability of Unnamed Persons: Whether the group of merchants using Helcim's services was identifiable and ascertainable.
Verification of Compliance: The necessity of the requested information for verifying the merchants' compliance with the ITA and ETA.
Judgment:
Judge: Madam Justice McDonald
Decision: The Court granted the Minister's order.
Reasoning:
The Court was satisfied that Helcim's merchants were an ascertainable group.
The information request was necessary to verify the merchants' compliance with their tax duties and obligations.
Costs: No costs were awarded.
Conclusion:
The Federal Court authorized the Minister to impose requirements on Helcim to provide information on its merchants. This decision underscores the importance of financial institutions' compliance with national revenue laws and the government's role in ensuring tax regulation adherence.
