What Is a CRA Requirement to Produce and Do I Have to Comply in Canada?

This answer covers Canadian federal tax law, which applies in every province.

Yes, a Requirement for Documents or Information from the CRA is mandatory, and it comes with a deadline. The notice must stipulate a reasonable time for compliance, so check the date on it as soon as it arrives. Treat it as a formal demand, not a favour.

The CRA's audit powers let an authorized person inspect, audit or examine books, records and property, and require the owner or person in charge to give all reasonable assistance and answer proper questions. If you do not comply, a judge can order compliance on the Minister's summary application, and refusing that order can be found to be contempt of court.

There are limits. A compliance order is not available for information or documents protected by solicitor-client privilege. The CRA also cannot impose a requirement on a third party about unnamed persons unless a judge first authorizes it. If the deadline is unrealistic or the request is unclear, it is worth speaking with a lawyer or accountant before the date passes, and keeping a copy of everything you send back. Do not simply ignore the notice, because silence tends to make a manageable request harder to resolve.