During an income tax audit, Revenue Canada served the appellants with demands for information and documents pursuant to s. 231(3) of the Income Tax Act.
The appellants failed to comply and were charged under s. 238(2).
They challenged the constitutional validity of s. 231(3), arguing it violated the protection against unreasonable search and seizure under s. 8 of the Charter.
The Supreme Court of Canada held that while a demand for documents constitutes a seizure, it is not unreasonable in the administrative and regulatory context of the Income Tax Act, which relies on self-reporting and requires random monitoring to ensure compliance.
