The Federal Court has ordered Rona to disclose commercial customer purchase records to CRA’s non-filer section. The order covers 57 listed stores across Canada. (23 QC; 10 Prairies; 9 BC; 15 ON.)
The order requires Rona to give electronic records showing:
a) The name of each commercial client;
b) The client’s address;
c) The total annual transactions for each client from 2012 to end of 2015 or a list of the transactions for each client for the same 4 years.
The Court noted that it has made similar orders for other industries, including pharmaceutical companies, those involved in metal recycling, and those involved in prepaid, rechargeable cards, as well as many Quebec municipalities.
By identifying a contractor’s purchases, CRA can make a rough estimate of sales for that contractor and compare it to reported GST/HST net tax and taxable income.
Minister of National Revenue v. Rona Inc. (FC) (Martineau J) (unreported)