Basile Angelopoulos

The appellants appealed decisions granting interlocutory impounding orders for commercial documents seized during tax investigations.

The respondents had challenged the constitutionality of the search provisions under the Charter and sought to have the documents sealed pending a final determination.

The Supreme Court of Canada dismissed the appeal, applying the three-part test for interlocutory relief.

The Court found a serious question to be tried, irreparable harm due to the continuing violation of privacy interests in the respondents' homes and offices, and that the balance of convenience favoured the respondents as the impounding orders would not paralyze the enforcement of taxation laws.

The appellants were investigated for income tax evasion and search warrants were issued under s. 231.3 of the Income Tax Act.

After the initial warrants were quashed, a second warrant was issued.

The appellants challenged the second warrant and the constitutionality of s. 231.3 by way of an originating petition for a declaration.

The British Columbia Supreme Court dismissed the application, and the Court of Appeal held it had no jurisdiction to hear the appeal because the matter was criminal in nature.

The Supreme Court of Canada allowed the appeal, holding that the Court of Appeal had jurisdiction to hear an appeal from an action for a declaration, and that s. 231.3 of the Income Tax Act violates s. 8 of the Charter.

The appellants appealed a Federal Court of Appeal decision quashing search warrants issued under section 231.3 of the Income Tax Act.

The respondents challenged the warrants, arguing that section 231.3 violated section 8 of the Charter by using the imperative word 'shall', thereby removing the authorizing judge's residual discretion to refuse a warrant even if statutory criteria were met.

The Supreme Court of Canada dismissed the appeal, holding that a residual discretion is an indispensable requirement for a reasonable search under section 8 of the Charter.

Section 231.3(3) was declared to be of no force or effect.