The case involved an application by the Minister of National Revenue for a compliance order under section 231.7 of the Income Tax Act, requiring the Respondents to provide specified documents for the 2019 and 2020 taxation years.
The Respondents sought to file an additional affidavit (Grater Affidavit) at a late stage, which the Minister opposed.
Key Points:
The Federal Court reviewed the Respondents’ motion to admit the late affidavit, focusing on legal principles governing the addition of evidence in application proceedings.
The Respondents argued that the affidavit was crucial for establishing facts related to the non-existence of certain documents and claims of privilege, which the Minister contested.
Court's Analysis:
The court applied factors to determine whether to allow the late filing of an affidavit, including its relevance, timing, potential prejudice, assistance to the court, and interests of justice.
The court found the Respondents' reasons for the late filing unconvincing, labeling them as tactical and disingenuous, particularly as the information could have been provided earlier.
The court criticized the Respondents for attempting to supplement their evidentiary record improperly and for obstructive behavior during cross-examinations.
Decision:
The motion to file the Grater Affidavit was dismissed due to lack of justification for its late submission and the tactical nature of the request.
Costs were awarded against the Respondents, with the court ordering them to pay $44,000 to the Applicant, reflecting the court's disapproval of the Respondents' litigation conduct.
