http://scc-csc.lexum.com/scc-csc/bulletins/en/item/4543/index.do 
Minister of National Revenue v. Duncan Thompson (March 13, 2014 –
Supreme Court of Canada, Bulletin of Proceedings, March 14, 2014, No. 35590) was a case in which the Minister sought, successfully, leave to appeal from a decision of the Federal Court of Appeal which explored the limits of solicitor-client privilege attaching to a lawyer’s accounting records. The matter arose out of collection proceedings against the lawyer. The Federal Court of appeal held that even though the
Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.) (the “Act”) contained a general exception to the rules of solicitor-client privilege for a lawyer’s accounting records, nevertheless the records should be examined individually to see if privilege obtained in respect of individual clients.
This case will undoubtedly be an important watershed in the evolution of the rules respecting solicitor-client privilege under the Act.:
Minister of National Revenue v. Duncan Thompson (F.C.) (Civil) (By Leave)
Coram : Abella, Rothstein and Moldaver JJ.
The application for leave to appeal from the judgment of the Federal Court of Appeal, Number A-515-12, 2013 FCA 197, dated August 29, 2013, is granted with costs in the cause. The application for leave to cross-appeal is dismissed with costs.
La demande d’autorisation d’appel de l’arrêt de la Cour d’appel fédérale, numéro A-515-12, 2013 CAF 197, daté du 29 août 2013, est accueillie avec dépens selon l’issue de la cause. La demande d’autorisation d’appel incident est rejetée avec dépens.
CASE SUMMARY
Taxation — Income tax — Enforcement — Solicitor-client privilege — Income Tax Act containing provision creating exception to privilege for accounting records of lawyers — Whether lawyer is required to disclose accounts receivable listing containing names of clients when that lawyer is subject to enforcement proceedings and is ordered to provide his accounting records — Whether courts are required to apply that exception without further inquiry — Whether Federal Court of Appeal erred in holding that, although Act contains exception for lawyer’s accounting records, judge nonetheless required to verify whether solicitor-client privilege protects any of lawyer’s clients individually prior to ordering disclosure — Whether Federal Court of Appeal erred in otherwise ordering respondent to provide information and documents set out in earlier court order.
The respondent is a lawyer who is the subject of enforcement proceedings pursuant to the
Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.). The Canada Revenue Agency (CRA) issued a Requirement seeking information and documents pertaining the respondent’s income and expenses, and assets and liabilities, including a current accounts receivable listing. The respondent provided some, but not all, of the information set out in the Requirement. The CRA subsequently found that he had provided no details regarding his accounts receivable other than a total balance owing.
The respondent challenged the Requirement, making solicitor-client privilege the focus of his objection. He sought a determination of whether s. 231.2(1) of the
Income Tax Act can be interpreted, applied or enforced so as to require a lawyer who is the subject of enforcement proceedings by the CRA to divulge information about his clients, information which he argued is protected by solicitor-client privilege. He also alleged that the Requirement was akin to an unreasonable search or seizure and thus was contrary to s. 8 of the
Canadian Charter of Rights and Freedoms.