Ottawa, June 8, 2012

Archived - Government Releases for Consultation Draft Legislative Proposals to Improve the Caseload Management of the Tax Court of Canada

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The Honourable Jim Flaherty, Minister of Finance, and the Honourable Rob Nicholson, Minister of Justice and Attorney General of Canada, today released for consultation draft legislative proposals to improve the caseload management of the Tax Court of Canada.

The draft legislation released today would implement the proposals that were released for consultation on November 10, 2011. It takes into consideration comments received from stakeholders.

The draft legislative proposals would:

  • Update the monetary limits for access to the informal appeal procedure.
    • Under this monetary limit proposal, a taxpayer could elect to proceed by way of the Tax Court’s Informal Procedure where the total amount in issue in an income tax appeal does not exceed $25,000 (or where a loss does not exceed $50,000). Also, under the new monetary limit for Goods and Services Tax/Harmonized Sales Tax (GST/HST) appeals, an appeal involving an amount in dispute in excess of $50,000 would be required to proceed by way of the General Procedure.
    • Certain procedural rule changes, which complement the introduction of the $50,000 limit for GST/HST appeals and align the rules for GST/HST appeals more closely with the rules that govern income tax appeals, are also included in the draft legislative proposals. As well, some procedural rule changes are proposed to harmonize the rules for excise duty appeals with the rules that have already been proposed to govern GST/HST appeals.
  • Remove the requirement for the Tax Court of Canada to deal with all issues raised in an appeal of an assessment together, thus allowing some issues to be disposed of independently and enabling the Minister of National Revenue to give effect to the decision of the Court in respect of those discrete issues.
  • Permit the Tax Court of Canada to hear a question affecting a group of two or more taxpayers that arises out of substantially similar transactions, and provide that the resulting judicial determination is binding on each taxpayer in the group.

These proposals would apply after Royal Assent to a bill implementing the required legislative amendments. Explanatory notes for the draft amendments to the Income Tax Act are included with the legislative proposals.

Stakeholders can provide their comments on the draft legislation to the Department of Finance by e-mail or by mail at the address below. The closing date for submissions is July 9, 2012. Once received by the Department of Finance, all submissions will be subject to the Access to Information Act and may be disclosed in accordance with its provisions.

Tax Policy Branch – Court Caseload Consultation
Department of Finance
140 O’Connor Street
Ottawa, Ontario
K1A 0G5

For further information, media may contact:

Mary Ann Dewey-Plante
Press Secretary
Office of the Minister of Finance

Julie Di Mambro
Press Secretary
Office of the Minister of Justice

Jack Aubry
Media Relations
Department of Finance

Media Relations
Department of Justice

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