Tax Court of Canada Legal Support

The Tax Court of Canada (the “Tax Court”) is often where taxpayers achieve the largest reductions in tax payable. However, the way your case is structured from the outset (during the CRA audit stage) can heavily influence your success at Tax Court.

There are distinct advantages to bringing a dispute before the Tax Court. For one, the CRA will be represented by the Department of Justice, which means a fresh set of eyes (different from the CRA auditors you dealt with). Additionally, a Tax Court judge – who is knowledgeable in tax law – will be a neutral decision-maker in your case.

5 Steps of The Tax Court of Canada’s Process

The Tax Court of Canada is an impartial court that provides a forum for taxpayers to resolve their tax disputes. The following is a general overview of the Tax Court of Canada’s process:

1. Choosing the Procedure:

Informal Procedure: Suited for smaller, less complex cases. There are no filing fees, and the process is designed to be quicker and simpler. The limits for tax and penalties are $25,000 per year or a loss amount of $50,000. Taxpayers can choose to limit their appeals to these amounts to utilize this procedure.

General Procedure: Used for larger or more complex cases where the amounts exceed the limits of the Informal Procedure. This process involves filing fees and follows formal legal steps. It offers a thorough examination of your case through documentary and oral disclosures, examinations for discovery, and potential trials.

2. Filing a Notice of Appeal:

This step is initiated once a taxpayer receives a Notice of Confirmation or an official response to vary their reassessments from CRA Appeals. Taxpayers have 90 days from receiving this notice to file a Notice of Appeal with the Tax Court of Canada. An Application for an Extension of Time to file a Notice of Appeal can be made within 1 year if the initial 90-day deadline is missed.

3. Litigation Steps:

Document Exchange:

Both parties exchange lists of documents they will rely on during the litigation.

Examinations for Discovery:

Each party questions the other, which can be done in person or in writing.

Settlement Conference:

If possible, a settlement conference is held to attempt to resolve the dispute before it goes to trial.

Trial:

If a settlement is not reached, the case proceeds to trial where it is heard before a Tax Court judge.

4. Potential Outcomes:

Resolution without Trial: The vast majority of matters resolve via a settlement without the need to proceed to a trial.

Decision by the Tax Court: Following a trial, the Tax Court will issue a decision, which can include upholding the assessment (Taxpayer lost), varying the assessment (partial success), or vacating the assessment (Taxpayer wins).

5. Appeal Options:

If either party disagrees with the Tax Court’s decision, they can appeal to the Federal Court of Appeal. Decisions under the General Procedure can have precedential value, influencing future cases.

Contact Us For Tax Court Legal Assistance

With the right preparation and representation, you have a much better chance of presenting a compelling case before a neutral decision-maker and potentially achieving significant tax reductions.

Our experienced tax lawyers are here to guide you every step of the way, fighting to protect your rights and helping you present a strong case. Contact us today to discuss how we can assist with your Tax Court of Canada matter.