Annual Caseload and Filing Trends
The Tax Court of Canada (TCC) hears hundreds of tax dispute appeals each year. In recent years, the number of new cases (appeals) filed annually has been in the low-to-mid thousands, with notable fluctuations. In the fiscal year 2022–23, a total of 3,230 appeals were instituted or filed. This represented a slight decrease from 3,426 cases filed in 2021–22, but a significant rebound from the 2,325 cases filed in 2020–21, when filings dropped (likely due to pandemic-related disruptions). Prior to 2020, the Court’s caseload was higher – for example, 5,211 new cases were filed in 2018–19, and 4,684 in 2019–20. This trend indicates that after a sharp dip in 2020–21, tax dispute filings have recovered towards pre-pandemic levels, though they remain somewhat below the peak numbers seen in the late 2010s.
Alongside new filings, the Court has been actively processing and disposing of cases. In 2022–23, the TCC disposed of 3,876 cases (through judgments, settlements, withdrawals, etc.), which actually exceeded the number of new filings that year. This helped reduce the backlog of active cases. As of March 31, 2023, there were 10,273 active proceedings pending before the Tax Court, down from 11,504 a year earlier. These figures suggest the Court improved its clearance rate, closing more cases than were opened in that period. By comparison, active caseloads in the late 2010s were around 10,500 cases, indicating that the overall pending volume has been relatively stable, with some pandemic-related variability.
Types of Tax Issues in Dispute
The Tax Court’s jurisdiction covers a range of federal tax matters, and the vast majority of cases involve income tax. As of the most recent data, about 81% of pending appeals are income tax disputes. For example, at March 31, 2023, there were 8,328 active Income Tax Act (Canada) cases in the Court’s inventory (out of 10,273 total). The next largest category of appeals relates to federal sales tax: roughly 15% of cases involve Goods and Services Tax/Harmonized Sales Tax (GST/HST) matters (approximately 1,584 active GST/HST cases at the same date..
A smaller share of the Court’s workload involves other statutes. Only about 3% of active proceedings are appeals under the Employment Insurance Act or Canada Pension Plan (e.g. disputes over EI premiums or CPP contributions/benefits), totaling 300–350 cases in recent years. The remainder (only a few dozen cases) fall into “other” categories (such as excise taxes, or other less common federal tax issues). These proportions have been relatively consistent in recent years – income tax issues dominate the docket, followed by GST/HST, with only a marginal number of cases concerning other taxes or programs.
Profile of Appellants: Individuals vs. Corporations
Both individual taxpayers and corporate taxpayers bring appeals to the Tax Court. The Court provides two procedural streams which tend to correlate with the type of appellant and size of dispute. Individual taxpayers (including unincorporated small businesses) frequently use the Informal Procedure, which is designed for simpler, lower-value cases. The informal track has no filing fee and does not require the appellant to hire a lawyer, but it is limited to disputes involving smaller amounts. This option is popular among individual appellants because of its accessibility and lower cost. In contrast, larger businesses (and some individuals with high-value disputes) proceed under the General Procedure, which has formal court processes (and typically involves counsel) and no monetary limit on the amount in dispute.
While official statistics do not specifically break down the proportion of cases by taxpayer type (individual vs. corporate), the nature of the procedural choices provides some insight. Many of the TCC’s appeals – especially those under the informal procedure – are launched by individual taxpayers challenging personal income tax assessments or GST credits. Corporate tax disputes (often involving significant amounts or complex issues) are fewer in number but can be prominent in the general procedure docket. Both categories of taxpayers are represented in the Court’s caseload. For instance, the Canada Revenue Agency (CRA) notes that when a taxpayer (individual or business) disagrees with an assessment and exhausts the internal objection process, they may appeal to the Tax Court under either the informal or general procedure as appropriate In practice, this means the TCC sees everything from self-represented individuals contesting modest personal tax adjustments, to large corporations litigating sophisticated tax avoidance or accounting issues.
Case Resolutions
Most tax appeals are resolved without proceeding to a full trial in court. Official analyses have shown that a substantial portion of Tax Court cases end in settlements or other resolutions before a judge issues a verdict. For example, in 2022–23 the Court held hearings (i.e. cases “heard in court”) in 713 cases, while 3,876 total cases were disposed that year. This implies that roughly four out of five dispositions were resolved through settlements, withdrawals or other non-trial closures, with only about 18% of cases requiring a court hearing and judgment. It is clear that settlement negotiations and alternative resolution mechanisms (such as settlement conferences facilitated by the Court’s process) play a major role in tax litigation, allowing many disputes to be concluded without a formal trial.
In summary, the Tax Court of Canada’s latest official statistics show a moderate volume of new cases each year (on the order of a few thousand, with recent increases post-2020), and a broad range of tax matters dominated by income tax issues. Appeals are brought by both individual Canadians and corporations, through procedures tailored to the size of the dispute. Most cases are resolved through settlements or other means before trial, reflecting an emphasis on dispute resolution; only a fraction proceed to a full hearing.
