Posted on September 15, 2023, Updated November 6, 2023

Constitutional Challenge to sections 237.3 and 237.4 of the Income Tax Act

On September 11, 2023, the Federation of Law Societies of Canada filed an application in the British Columbia Supreme Court, challenging the constitutionality of the application of recent amendments to the mandatory reporting obligations in the Income Tax Act to members of the legal profession.  Please see their news release for further details.

Since the filing of the application, the Federation has negotiated a consent injunction suspending the application of the challenged provisions to lawyers and articling students in all provinces and territories.  The injunction will remain in place until earlier of the Court’s decision on the injunction application or November 20, 2023. At the hearing on the application for an injunction held on October 20, 2023, the judge extended the injunction to provide more time to consider the arguments of the parties. A decision is expected to be released on or before December 1, 2023.

The Federation’s pleadings are here. The government’s pleadings are here.

For additional information, see the Federation of Law Societies of Canada Backgrounder.