Suit Saying Canada Abused Panama Papers Audit Power Hits Setback

A lawsuit alleging that Canada’s tax authority overstepped its audit powers in pursuit of a criminal investigation against individuals linked to the Panama Papers can’t proceed in its current form, an appeals court has ruled.

A lower court decision from June 2020 clearing the lawsuit against the Canada Revenue Agency failed to properly determine whether the agency abused its audit powers, Federal Court of Appeal Justice Judith Woods wrote in a judgment released Thursday.

“The Federal Court failed to identity sufficient material facts to disclose a reasonable cause of action,” Woods wrote, referring to the lower court ruling.