Under section 231.7 of the Income Tax Act, a judge of a superior court or the Federal Court may order a person to give CRA auditors access, assistance, information or documents sought under ITA s. 231.1. If the taxpayer doesn’t comply with the order, the court will demand that the taxpayer show why he isn’t in contempt. If the taxpayer doesn’t explain his failure, the court can impose a fine or imprisonment.
Here is a rare case where the court did find a taxpayer in contempt. (Most of the time, presumably, taxpayers comply with the court order—if it even goes to court.)
“[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.
“THIS COURT ORDERS that:
…
“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;
…”