Fio Corporation v. The Queen, 2014 TCC 58 -- summary under Section 241

By services, 28 November, 2015

The taxpayer was reassessed for its 2007 and 2008 taxation years, appealed to the Tax Court and then was further reassessed based on documents which it had provided on discovery.

In finding that the further reassessments had breached the rule in Juman v. Soucette, 2008 SCC 8, that "information obtained on discovery ... is subject to the implied undertaking [that] it is not to be used by the other parties, except for the purpose of that litigation," D'Arcy J rejected the proposition that s. 241 is a "complete code" on what the Minister may or may not do with taxpayer information, stating (at para. 58):

[S]ubsection 241(4) allows for the use of such information in numerous situations relating to the effective application of the ITA. This subsection only provides exceptions to the statutory prohibition contained in subsection 241(1); it does not override common law rules, such as the implied undertaking rules.

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s. 241 does not override implied undertaking rule
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