Failure To File Tax Returns: Canadian Tax Lawyer Guidance

• Published date: 21 June 2021
• Law Firm: Rotfleisch & Samulovitch P.C.
• Author: Mr David Rotfleisch

Merrill v R - tax guidance from an experienced Canadian tax lawyer with respect to failure to file tax returns

In 2019, the Canada Revenue Agency (CRA) served Mr. Merrill with Notices of Requirement to file his personal income tax returns for the 2014 to 2017 taxation years by April 30, 2019. However, Mr. Merrill believed he was not required to accept or respond to the Notices of Requirements. Most of his complaints and the defences he advanced were "organized pseudo-legal commercial arguments" ("OPCAs") as described and explained in Meads v. Meads, 2012 ABQB 571. British Columbia courts have repeatedly rejected these arguments. He didn't comply with the request until January 2020. Therefore, the CRA took the position that he was guilty of the strict liability offence in s.238(1) of the Income Tax Act due to failure to file or make a return as and when required by or under the Income Tax Act. After the trial judge ruled in favor of the CRA, Mr. Merrill decided to self-represent instead of retaining an experienced Canadian tax litigation lawyer and appealed to the BC Superior Court which upheld the trial judge's decision.

Failure to comply with the Notices of Requirement is a strict...