The Canadian Taxpayers Federation is intervening to protect the privacy rights of taxpayers at the Supreme Court of Canada. The case will determine the constitutional limits on the records government agencies can demand from taxpayers before proving why they need them.

“Taxpayers don’t give up their rights when the government comes knocking,” said Devin Drover, CTF General Counsel. “We’re going to the country’s top court to stand up for taxpayers and defend their privacy rights and liberties under the Charter of Rights and Freedoms.”

The case is Ontario Securities Commission v. Binance Holdings Limited.

In 2023, the Ontario Securities Commission demanded that crypto exchange Binance hand over all communications “regarding Ontario (or Canada generally)” from every director, officer, employee, contractor and consultant going back to Jan. 1, 2021, with no limit on subject matter.

The Court of Appeal for Ontario struck down the demand in November 2025, calling it “staggering in its breadth.” The court ruled that such a demand for documents is unconstitutional under section 8 of the Charter, which protects Canadians from unreasonable search or seizure, as the agency had no “reasonable foundation to believe” the documents would be relevant to its investigation.

The OSC is asking the Supreme Court to lower that standard so an agency can demand any records “rationally connected” to its inquiry. The OSC’s own court filings say the ruling will affect the Canada Revenue Agency’s power to demand records under the Income Tax Act.

“Governments shouldn’t be able to demand every email, text and chat message you’ve sent for years just because it’s running an investigation,” said Drover. “An agency should have to show it has a real reason to believe records are relevant before it forces you to hand them over.”

Whatever standard the court sets will govern CRA tax audits, where almost any record a person holds can be connected to their income. The CTF is intervening to argue the taxman’s audit powers need constitutional limits.

Binance spent more than two years going before three different bodies before any court ruled on its Charter argument. An ordinary taxpayer or small business owner can’t afford that fight.

Meanwhile, a federal budget bill now before a House of Commons committee would let the CRA fine taxpayers $50 a day, up to $25,000, for not fully answering an information request.

“If the Supreme Court lowers the bar in this case, it lowers it for the taxman too,” Drover said. “A tax auditor could demand years of a small business owner’s emails and texts on a hunch and Ottawa wants to fine people $50 a day until they comply.

“Taxpayers deserve someone in that courtroom speaking for them.”

The Supreme Court has not yet set a hearing date.