Bloomberg Tax
Jan. 16, 2023, 9:41 PM

Firm Claims Canada Tax Body Abused Power in Fraud Investigation

James Munson
James Munson
Freelance Correspondent

The owners of an accounting firm asked a court Monday to rule Canada’s tax authority was negligent, malicious, and abused its power when investigating their company for what the agency alleged were fraudulent applications for scientific research tax credits.

Allan Jay Gordon and James Allan Deacur told the Federal Court of Appeal it should overturn a lower court ruling from 2019 that defended the Canada Revenue Agency’s conduct during its investigation and prosecution of the pair and their company, James A. Deacur and Associates Ltd., during a nine-year period.

Gordon and Deacur argued that Federal Court Justice Robert L. ...