R. v. Bélanger – FCt.: Taxpayer found guilty of contempt for failure to obey a compliance order

http://decisions.fct-cf.gc.ca/fc-cf/decisions/en/item/66966/index.do

R. v. Bélanger (February 4, 2014 – 2014 FC 127) involved a chartered accountant who largely failed to comply with seven requirements served on him pursuant to paragraph 231.1(1)(a) of the Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.) (the “ITA”). CRA then obtained a compliance order pursuant to section 231.7 of the ITA requiring him to produce the rest of the materials set out in the requirements. The taxpayer failed to produce any further materials in response to the compliance order and CRA brought this contempt proceeding in the Federal Court. The court found the taxpayer guilty of contempt:

[28] In this case, the evidence shows that Daniel Bélanger was not only informed of Justice de Montigny’s order but that he had agreed to its terms on July 11, 2013, at the hearing. On its very face, Justice de Montigny’s order is clear and unequivocal.

[29] Aside from an incomplete list of documents submitted by Daniel Bélanger, the applicant to this date has produced nothing, despite repeated requests by the respondent. Daniel Bélanger has not provided satisfactory or convincing explanations before this Court that would explain his failure to comply with Justice de Montigny’s order. On the contrary, the evidence shows that Daniel Bélanger instead sought to buy more time by not responding to many of the applicant’s calls. These instances of non-compliance were not involuntary.

[30] Even if certain documents were produced, the fact remains that Daniel Bélanger was in fact in contempt of court in not providing all of the documents and thus not complying with Justice de Montigny’s order, of which he was personally aware. The updated list of missing documents is attached hereto in Appendix B.

The taxpayer was sentenced to a fine of $1,500 and a cost award of $2,500, both payable within 30 days of the order in this proceeding and was also ordered to comply with the terms of the original compliance order within 30 days (failing which he would presumably face additional contempt sanctions).