Update on Amendments to the Income Tax Act

October 25, 2023

The temporary injunction order obtained by the Federation of Law Societies of Canada in conjunction with a petition challenging the constitutionality of amended mandatory reporting obligations under the Income Tax Act has been extended to December 1, 2023. The hearing on the application for an injunction was held in the Supreme Court of British Columbia on October 20, 2023. The judge hearing the application extended the injunction to provide more time to consider the arguments of the parties. A decision on the injunction application is expected to be released on or before December 1, 2023.

The Federation filed an application in the British Columbia Supreme Court on September 11, 2023, challenging the constitutionality of the application of recent amendments to the mandatory reporting obligations in the Act to members of the legal profession. The application seeks to exempt legal counsel from the obligation of taxpayers, promoters, and advisors, including legal counsel, to provide details to the Canada Revenue Agency of transactions that may constitute tax avoidance. A consent injunction obtained by the Federation was to expire on November 20, 2023.

Click here for a detailed backgrounder released in September from the Federation of Law Societies of Canada.