Shopify was a Canadian corporation providing a software platform for online e-commerce transactions. After receiving a request from the Australian Tax Office (ATO) for such information pursuant to Article 21 of the Canada-Australia Treaty (the “Convention”) a year previously, the Minister issued a requirement to Shopify pursuant to s. 231.2 of the ITA (and s. 289(3) of the ETA) for information identifying listed particulars for all merchant customers of Shopify who had revenues from sales to customers located in Australia. The Ministers sought judicial authorization of such requests pursuant to the “unnamed persons” provisions of s. 231.2(3) (and s. 289(3) of the ETA).
Régimbald J found that his refusal to authorize the exchange of the requested information pursuant to s. 231.2(3)(b) was consistent with Article 21 of the Convention because that treaty did not affect the rights and safeguards secured under the ITA, nor did it impose on the Minister an obligation to carry out measures at variance with Canadian law.