Shopify asks Federal Court to stay CRA’s new request for merchant information

Shopify asks Federal Court to stay CRA’s new request for merchant information

The Globe and Mail

Shopify has filed a motion with the Federal Court of Canada to halt the CRA’s latest attempt to obtain merchant data through an unnamed persons requirement (UPR). This follows a legal battle dating back to 2023, when the CRA initially sought six years of merchant data for tax compliance purposes. A federal judge dismissed that request in May, calling it overly broad, but the CRA appealed the decision, with a hearing scheduled for December. Despite the pending appeal, the CRA filed a new application in June, prompting Shopify's latest legal action.

Shopify argues the new application is redundant and forces the company to manage overlapping cases in two courts. The company has called the CRA’s approach a misuse of judicial resources, as the new request covers similar ground to the ongoing appeal. This case underscores the broader tension between governmental oversight and data privacy in the digital economy.

Why it matters: The outcome of this case could influence how tax authorities globally approach data requests from e-commerce platforms. A ruling favoring Shopify may encourage other platforms to challenge similar demands, while a decision against Shopify could raise compliance costs across the sector.