Canada (Minister of National Revenue) v. Ellingson, 2006 DTC 6402, 2006 FCA 202 -- summary under Subsection 231.2(1)

Requirements issued to the taxpayer following the laying of charges against him in California in connection with various offences involving an illicit drug importation and distribution operation and the laundering of the proceeds were found to have been issued predominantly for the purpose of the conduct of an audit rather than the pursuit of a criminal investigation. No clear decision had been made to pursue a criminal investigation based on the evidence, and respecting the further question as to whether an adversarial relationship had developed within the meaning of the Jarvis case, the pre-audit inquiries were but a first step in determining whether the taxpayer was a non-filer for the taxation years in question, and the practice of the Special Enforcement Program Unit doing the investigation was to only conduct audits and not criminal investigations.