In MNR v. Amdocs Canadian Managed Services Inc., 2015 DTC 5117 (copy attached), a Canadian subsidiary of a multinational group (Canco) made reasonable efforts to locate a functional organization chart and working papers requested by the CRA during a transfer pricing audit.  However, the specific documents requested by the CRA under s. 231.1 did not exist, or if they did exist (somewhere in the world), Canco did not have them and had no power to get them.  The Minister of National Revenue (Minister) subsequently brought an application to the Federal Court under s. 231.7 for an order compelling Canco to produce the specific chart and working papers requested.  In rejecting the Minister’s application, the Court said at paragraph 75:

“The ITA does not contemplate the creation of records where they do not exist. That which does not exist cannot be produced. The exception carved out in s 231.5(2) applies here as [Canco] is simply unable to do everything required of it under s 231.”