R. v. Cameron – FCt: Taxpayer found in contempt for failure to obey a compliance order

Bill Innes on Current Tax Cases

http://decisions.fct-cf.gc.ca/fc-cf/decisions/en/item/71644/index.do New Window

Canada (National Revenue) v. Cameron (May 20, 2014 – 2014 FC 482) was a motion by the Crown to hold Mr. Cameron in contempt for failure to obey a compliance order made pursuant to section 237.1 of the Income Tax Act requiring him to produce information and documents.

Mr. Cameron did not comply with the order or even acknowledge the Court’s jurisdiction:

[8] The Respondent’s breach is intentional and in flagrant disregard for this Court’s Orders. Notwithstanding Mr. Cameron’s appearance at the hearing, he refused to acknowledge the requirements of this Court’s Orders or the jurisdiction of this Court over his person.

The Court’s response was strong and succinct:

1. The Order that accompanies these reasons is to be personally served upon Mr. Cameron by leaving a copy of it with him.

2. The Respondent is in contempt of this Court’s Order of August 21, 2013, and shall pay a fine of $5,000.00 and solicitor-client costs of the Applicant in the amount of $5,822.34, within 30 days from the date of service of the Sentencing Order, failing which the Respondent shall be subject to imprisonment for 30 days;

3. If, within 30 days from the date of service of the Sentencing Order, the Respondent arranges with the Applicant for an oral examination under oath and provides evidence satisfactory to the Court that the Respondent is not able to pay the fine or the costs, or both, or that he needs an extended period of time to pay, then the Respondent shall not be imprisoned for failure to pay the fine or costs or both; and

4. If the Applicant informs that Court by affidavit that either the fine or the costs or both have not been paid within 30 days from the date of service of the Sentencing Order, and that the Respondent has not arranged with the Applicant for an oral examination under oath with respect to the Respondent’s ability to pay the fine or the costs or both, the Court shall issue a warrant for the Respondent’s imprisonment for 30 days.

5. The Respondent is to provide the information and documents and meet with officer(s) of the Canada Revenue Agency as set out in the Compliance Order within 30 days from the date of service of this Sentencing Order, or, provide the Applicant with an affidavit explaining why he is not able to provide the information and documents and meet with officer(s) of the Canada Revenue Agency as required, failing which the Respondent shall be imprisoned for ten (10) days, such term to run consecutively to any other term of imprisonment imposed by this Order; and

6. If the Applicant informs the Court by affidavit that the Respondent has not, within 30 days of service of the Sentencing Order, provided the information and documents and met with officer(s) of the Canada Revenue Agency and has not provided an affidavit explaining why he is not able to provide the information and documents and meet with officer(s) of the Canada Revenue Agency, the Court shall issue a warrant for the Respondent’s imprisonment for a term of ten (10) days, such term to run consecutively to any other term of imprisonment imposed by this Order.