ARTICLE
10 June 2025

Shopify Wins In Federal Court Against CRA In Merchant Data Case

BJ
Bennett Jones LLP

Contributor

Bennett Jones is one of Canada's premier business law firms and home to 500 lawyers and business advisors. With deep experience in complex transactions and litigation matters, the firm is well equipped to advise businesses and investors with Canadian ventures, and connect Canadian businesses and investors with opportunities around the world.
The Federal Court dismissed two requests from the Canada Revenue Agency (CRA) that would have, if accepted, compelled Shopify to disclose six years of data from its merchants.
Canada Tax

The Federal Court dismissed two requests from the Canada Revenue Agency (CRA) that would have, if accepted, compelled Shopify to disclose six years of data from its merchants. The cases began in 2023 when the CRA filed a request for personal information about Shopify's merchants.

The Court held that the application from the CRA for Shopify merchant data could not be authorized, as the CRA had failed to establish an "ascertainable group" of individuals in its filing. In a second decision, the Court rejected a CRA application made in response to a request from the Australian Tax Office. In arguing the case, the Minister of National Revenue indicated that the CRA's application would serve as a test case for future applications on behalf of foreign tax authorities. In rejecting the CRA's application, the Federal Court provided a robust analysis of the interaction of Canada's treaties and the provisions of the Income Tax Act (Canada).

In its reasons, the Federal Court noted that the cases may serve as key precedents in the future.

Bennett Jones advised Shopify.

The full decisions are available here and here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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