The Tax Court of Canada (TCC) was established in 1983 and is a federal superior court dealing with tax matters as they relate to companies, individuals and other parties and their disputes with the Canada Revenue Agency.
The litigation of a federal tax dispute begins by filing a Notice of Appeal in the Tax Court of Canada. Cases may proceed either by way of Informal or General Procedure. The Informal Procedure is used where the amount involved is $12,000 or less while the General Procedure is used when the amount exceeds $12,000.
Trials in the Tax Court of Canada often last less than a day but when the case is more complex the trial can last several weeks.
Costs are recoverable by the winner in accordance with rather modest tariff amounts. However, reasonable disbursements including expert witness costs are often fully recoverable.
Appeals of decisions of the Tax Court of Canada fall within the jurisdiction of the Federal Court of Appeal. However the Supreme Court of Canada grants leave to appeal a federal tax case where the question involved is considered to be of public importance.
If the a taxpayer wins the Tax Court of Canada can order the Revenue Minister to reassess as prescribed by the judge or, where the assessment (or reassessment) is wholly incorrect, it may be vacated entirely.
Contact National Tax Service today. It is never too early to defend your tax position.