The appellant taxpayer was audited by revenue officials who obtained documents and statements using their statutory requirement powers.
The file was subsequently transferred to special investigations, and the taxpayer was charged with tax evasion.
The Supreme Court of Canada applied the principles from R. v. Jarvis to determine when the audit became an investigation engaging the taxpayer's Charter rights.
The Court concluded that the investigation commenced after a specific meeting, meaning evidence gathered prior to that point was admissible, while evidence gathered afterward using audit powers violated the Charter and was subject to exclusion under s. 24(2).
The appeal was dismissed and the order for a new trial was confirmed.
