Tax Court of Canada Rules (Informal Procedure) (SOR/90-688b)

• 14 (1) Any party may appeal to a judge of the Court from the taxation, such appeal to be exercised by notice in writing sent to the Registrar within 20 days of the date of mailing of the certificate of taxation.

• (2) The time referred to in subsection (1) may be extended by a Judge of the Court.

Costs in Vexatious Proceedings

14.1 Where a judge has made an order under section 19.1 of the Act, costs may be awarded against the person in respect of whom the order has been made.

Removal of an Appeal from the Informal Procedure to the General Procedure or from the General Procedure to the Informal Procedure

15 An application by the Deputy Attorney General of Canada to remove the appeal from the informal procedure to the general procedure shall be by motion, and the Court may give such directions as are necessary for the subsequent conduct of the appeal. There shall be no additional filing fee for proceeding in the general procedure unless the Court so directs.

• 16 (1) Where an appeal has been instituted to which the general procedure in the Act is applicable, and if

  • (a) the aggregate of all amounts in issue is equal to or less than $12,000,

  • (b) the amount of the loss that is determined under subsection 152(1.1) of the Income Tax Act and that is in issue is equal to or less than $24,000, or

  • (c) the only subject-matter of the appeal is an amount of interest assessed under the Income Tax Act,

  the appellant may, within 90 days from the date on which the reply is served or within such additional time as the Court may, on motion for special reasons, allow, elect that the informal procedure under the Act shall apply to the appeal.

• (2) The election under subsection (1) may be in the form set out in Schedule 16.

Election to Limit Appeal to Informal Procedure

• 17 (1) Where

  • (a) the aggregate of all amounts in issue exceeds $12,000, or

  • (b) the amount of the loss in issue exceeds $24,000,

  and the appellant wants the informal procedure under the Act to apply to the appeal, the appellant shall elect to limit the appeal to $12,000 or $24,000, as the case may be.

• (2) Where the appellant wishes to make an election under this section in the notice of appeal, the notice of appeal may be in the form set out in Schedule 17(2).

• (3) Where the appellant wishes to make an election under this section after filing the notice of appeal, the election may be in the form set out in Schedule 17(3).

Application for Extension of Time

• 18 (1) A person who has made an application to the Minister to extend the time for the serving of a notice of objection or the making of a request in writing to the Minister for an assessment or determination in respect of an avoidance transaction may apply to the Court to have the application granted after either

  • (a) the Minister has refused the application, or

  • (b) 90 days have elapsed after service of the application and the Minister has not notified the person of the Minister’s decision,

  but no application under this section may be made after the expiration of 90 days after the day on which notification of the Minister’s decision was mailed to the person.

• (2) An application made under subsection (1) may be in the form set out in Schedule 18(1) — OBJECTION or 18(2) — REQUEST, as the case may be.

• (3) An application under subsection (1) shall be made by filing with the Registry, in the manner provided in section 4.1, three copies of the application made to the Minister accompanied by three copies of the notice of objection or the request, as the case may be, and three copies of the Minister’s decision, if any.

• (4) The Court may dispose of an application made under subsection (1) by

  • (a) dismissing it, or

  • (b) granting it,

  and, in granting it, may impose such terms as it deems just or order that the notice of objection or the request be deemed to be a valid objection or request as of the date of the order.

• (5) No application shall be granted under this section to a person unless

  • (a) the application was made within one year after

    • (i) the expiration of the time specified by the Income Tax Act for serving a notice of objection*, or

    • (ii) the lapse of 180 days after the day of mailing of a notice under subsection 245(6) of the Income Tax Act; and

  • (b) the person demonstrates that

    • (i) within the applicable time specified in subparagraph (a)(i) or (ii), the person

      • (A) was unable to act or instruct another to act in the person’s name, or

      • (B) had a bona fide intention to object to the assessment or make the request,

    • (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application, and

    • (iii) the application to extend time was made to the Minister as soon as circumstances permitted it to be made.

  • * Subsection 165(1) of the Income Tax Act provides:

    • “165. (1) A taxpayer who objects to an assessment under this Part may serve on the Minister a notice of objection, in writing, setting out the reasons for the objection and all relevant facts,

      • (a) where the assessment is in respect of the taxpayer for a taxation year and the taxpayer is an individual (other than a trust) or a testamentary trust, on or before the later of

        • (i) the day that is one year after the taxpayer’s filing-due date for the year, and

        • (ii) the day that is 90 days after the day of mailing of the notice of assessment; and

      • (b) in any other case, on or before the day that is 90 days after the day of mailing of the notice of assessment.”

  Subsection 248(1) provides:

  “filing-due date for a taxation year of a taxpayer means the day on or before which the taxpayer’s return of income under Part I for the year is required to be filed or would be required to be filed if tax under that Part were payable by the taxpayer for the year;”

• (6) The application pursuant to subsection (1) is deemed to have been filed on the date of its receipt by the Registry, even if the application is not accompanied by the documents listed in subsection (3), provided that those documents are filed within 30 days after that date or within any other reasonable time that the Court establishes.

• 18.1 (1) An application for an order extending the time within which an appeal may be instituted may be in the form set out in Schedule 18.1.

• (2) An application under subsection (1) shall be made by filing with the Registry, in the manner provided in section 4.1, three copies of the application accompanied by three copies of the notice of appeal.

• (3) No application shall be granted under this section to a person unless

  • (a) the application is made within one year after the expiration of 90 days after the day on which the notice was mailed to the person informing the person that the Minister has confirmed the assessment or has reassessed; and

  • (b) the person demonstrates that

    • (i) within the 90-day period specified in paragraph (a) the person

      • (A) was unable to act or to instruct another to act in the person’s name, or

      • (B) had a bona fide intention to appeal,

    • (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application,

    • (iii) the application was made as soon as circumstances permitted it to be made, and

    • (iv) there are reasonable grounds for appealing from the assessment.

• (4) The application pursuant to subsection (1) is deemed to have been filed on the date of its receipt by the Registry, even if the application is not accompanied by the notice of appeal referred to in subsection (2), provided that the notice of appeal is filed within 30 days after that date or within any reasonable time that the Court establishes.

Judgments on Admissions or Certain Documentary Evidence

18.2 A party may, at any stage of a proceeding, apply for judgment in respect of any matter

• (a) upon any admission in the pleadings or other documents filed in the Court, or in the examination of another party, or

• (b) in respect of which the only evidence consists of documents and such affidavits as are necessary to prove the execution or identity of the documents,

without waiting for the determination of any other question between the parties.

Application for the Postponement of a Period of Suspension

• 18.3 (1) An application for the postponement of a period of suspension of the authority of a registered charity to issue an official receipt referred to in Part XXXV of the Income Tax Regulations may be in the form set out in Schedule 18.3.

• (2) An application under subsection (1) shall be filed in the manner provided in section 4.1 and shall include a copy of the notice of suspension as well as a copy of the notice of objection filed with the Minister.

• (3) Unless the Court otherwise determines, it shall dispose of the application within 30 days after its filing on the basis of the representations contained in it and any additional information, if any, that the Court may require, after having given the Minister an opportunity to make representations.

Subpoena

• 19 (1) A party who requires the attendance of a person as a witness at a hearing may serve the person with a subpoena requiring the person to attend the hearing at the time and place stated in the subpoena and the subpoena may also require the person to produce at the hearing the documents or other things in the person’s possession, control or power relating to the matters in question in the appeal that are specified in the subpoena.

• (2) On the request of a party or of counsel, the Registrar, or some other person authorized by the Chief Justice, shall sign, seal and issue a blank subpoena and the party or counsel may complete the subpoena and insert the names of any number of witnesses.

• (3) A subpoena shall be served on a witness personally and, at the same time, witness fees and expenses in accordance with section 12 shall be paid or tendered to the witness.

General

20 Subject to any order that the Court, in special circumstances, may make restricting access to a particular file by persons other than the parties to a matter before the Court, any person may, subject to appropriate supervision, and when the facilities of the Court permit without interfering with the ordinary work of the Court,

• (a) inspect any Court file relating to a matter before the Court; and

• (b) on payment of $0.40 per page, obtain a photocopy of any document on a Court file.

• 21 (1) Failure to comply with these rules shall not render any proceedings void unless the Court so directs, but such proceedings may be set aside either in whole or in part as irregular and may be amended or otherwise dealt with in such manner and on such terms as, in the opinion of the Court, the circumstances of the case require.

• (2) Where a person makes an application to set aside a proceeding for irregularity, the objections intended to be put forward shall be stated clearly in the application.

• (3) The Court may, where and as necessary in the interests of justice, dispense with compliance with any rule at any time.

• (4) Where matters are not provided for in these rules, the practice shall be determined by the Court, either on a motion for directions or after the event if no such motion has been made.