Federal Court of Appeal affirms that Tax Court settlements must be made on a...
On January 10, 2012, the Federal Court of Appeal (the “FCA”) released its decision in CIBC World Markets Inc. v. The Queen (2012 FCA 3) on a motion by the taxpayer seeking an order for enhanced costs....
View ArticleVelcro Canada – Clarification on Cost Awards
In what circumstances can a party obtain a large lump-sum cost award after a favourable Tax Court decision? That was the question considered by the Tax Court in Velcro Canada Inc. v. The Queen (2012...
View ArticleGross Negligence and Settlement Offers
In Hine v. The Queen (2012 TCC 295), a decision released last week, the Tax Court of Canada considered whether a taxpayer was “grossly negligent” in relying on his accountant (who happened to be his...
View ArticleTaxpayer wins an important and complex case – Tax Court orders CRA to pay 60%...
Traditionally in a Tax Court appeal the costs awarded to a successful taxpayer have been no more than a small fraction of the out-of-pocket costs actually incurred in pursuing the appeal. The Court...
View ArticleNuances of a tax appeal make it unlike a typical civil trial
A tax dispute with the Canada Revenue Agency may be an unwelcome and unpleasant experience for a taxpayer. In addition to the potentially complex tax issues, the dispute resolution process itself can...
View ArticleFCA: TCC Erred in Awarding Costs on Basis of Pre-Appeal Conduct
The Tax Court has in recent years demonstrated a willingness to use cost awards to control the parties’ conduct. This includes awarding lump-sum amounts, which may depart markedly from the “tariff”...
View ArticleTax Court Continues “New Approach” to Cost Awards
The Tax Court’s approach to cost awards has evolved significantly in recent years. The Court’s interpretation and application of the factors under subsection 147(3) and the new settlement offer rules...
View ArticleKruger: Appeal Allowed … Crown Awarded Costs
How should the Tax Court award costs where the taxpayer’s appeal was allowed but no changes were made to the assessment at issue? This unusual situation was considered by the Tax Court in Kruger...
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