The Federal Court of Appeal has mandated that Shopify preserve critical data linked to a legal dispute with the Canada Revenue Agency (CRA). This decision comes in light of allegations regarding Shopify’s policy of deleting inactive account information after two years.
Background of the Case
The conflict began when the National Revenue Minister requested Justice Nathalie Goyette to require Shopify to maintain specific data. The CRA insists on obtaining merchant data from Shopify covering the last six years, starting from 2023.
The goal of this data retrieval is to verify if Canadian merchants using Shopify’s platform are compliant with both the Income Tax Act and the Excise Tax Act. However, a previous ruling in June did not grant the CRA access to the requested records. The judge stated that the CRA failed to sufficiently identify the group from which it sought the data.
CRA’s Appeal
Following the unfavorable ruling, the CRA has pursued an appeal. As legal proceedings are ongoing, CRA spokesperson Nina Ioussoupova noted that the agency would refrain from commenting further at this time. Shopify has not provided any statement regarding the appeal or the ruling.
Key Facts Summary
- Date of Ruling: January 2, 2023
- Involved Parties: Shopify, Canada Revenue Agency (CRA)
- Data Why Needed: Compliance verification for Income Tax and Excise Tax Act
- Previous Ruling Date: June 2022
This ongoing case highlights the scrutiny faced by tech companies regarding data retention policies, especially as regulatory bodies push for greater accountability and transparency in financial practices.
