Registration
SOR/2004-100 27 April, 2004

TAX COURT OF CANADA ACT

Rules Amending the Tax Court of Canada Rules (General Procedure)

Whereas, pursuant to subsection 22(3) (see footnote a) of the Tax Court of Canada Act, the rules committee of the Tax Court of Canada published a copy of the proposed Rules Amending the Tax Court of Canada Rules (General Procedure), substantially in the annexed form, in the Canada Gazette, Part I, on August 30, 2003, and invited any interested person to make representations with respect to the proposed Rules;

Therefore, the rules committee of the Tax Court of Canada, pursuant to section 20 (see footnote b) of the Tax Court of Canada Act and subject to the approval of the governor in council, hereby makes, effective on the date of publication in the Canada Gazette, the annexed Rules Amending the Tax Court of Canada Rules (General Procedure).

Ottawa, December 16, 2003

Column 1	Column 2
Alban Garon Chief Justice	Donald G.H. Bowman Associate Chief Justice
Robert Emond Chief Administrator of the Courts Administration Services
Michael J. Bonner	Edwin G. Kroft
Louise Lamarre Proulx	Ian MacGregor
Campbell J. Miller	Maurice A. Régnier

P.C. 2004-497 27 April, 2004

Her Excellency the Governor General in Council, on the recommendation of the Minister of Justice, pursuant to subsection 20(1) (see footnote c) of the Tax Court of Canada Act, hereby approves the annexed Rules Amending the Tax Court of Canada Rules (General Procedure).

RULES AMENDING THE TAX COURT OF CANADA
RULES (GENERAL PROCEDURE)

AMENDMENTS

1. The definitions "Registrar" and "Registry" in section 2 of the Tax Court of Canada Rules (General Procedure) (see footnote 1) are replaced by the following:

"Registrar" means the person appointed as Registrar of the Court by the Chief Administrator of the Courts Administration Service in consultation with the Chief Justice. (greffier)

"Registry" means the Registry established by the Chief Administrator of the Courts Administration Service at the principal office of the Court at 200 Kent Street, 2nd Floor, Ottawa, Ontario K1A 0M1 (telephone: (613) 992-0901 or 1-800-927-5499; fax: (613) 957-9034; website: www.tcc-cci.gc.ca) or at any other local office of the Court specified in notices published by the Court. (greffe)

2. Section 3 of the Rules is replaced by the following:

3. These rules apply to all proceedings in the Court to which the general procedure in the Act applies, including references under section 173 or 174 of the Income Tax Act, section 310 or 311 of the Excise Tax Act, section 97.58 of the Customs Act, section 51 or 52 of the Air Travellers Security Charge Act, and section 204 or 205 of the Excise Act, 2001, with such modifications as the circumstances require.

3. Subsection 4(2) of the French version of the Rules is replaced by the following:

(2) En cas de silence des présentes règles, la pratique applicable est déterminée par la Cour, soit sur une requête sollicitant des directives, soit après le fait en l'absence d'une telle requête.

4. Section 9 of the Rules is replaced by the following:

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

5. (1) Paragraphs 21(1)(a) to (c) of the Rules are replaced by the following:

(a) in Form 21(1)(a) in the case of an appeal from an assessment under the Income Tax Act, the Petroleum and Gas Revenue Tax Act, the Excise Tax Act, the Customs Act, the Air Travellers Security Charge Act or the Excise Act, 2001,

(b) in Form 21(1)(b) in the case of an agreement for the determination of a question under section 173 of the Income Tax Act, section 310 of the Excise Tax Act, section 97.58 of the Customs Act, section 51 of the Air Travellers Security Charge Act or section 204 of the Excise Act, 2001,

(c) in Form 21(1)(c) in the case of an application for the determination of a question under section 174 of the Income Tax Act, section 311 of the Excise Tax Act, section 52 of the Air Travellers Security Charge Act or section 205 of the Excise Act, 2001,

(2) Subsection 21(1) of the Rules is amended by striking out the word "or" at the end of paragraph (c), by adding the word "or" at the end of paragraph (d) and by adding the following after that paragraph:

(e) in Form 21(1)(e) in the case of an appeal from a confirmation or redetermination by the Minister of the Environment of the fair market value of an ecological gift under subsection 118.1(10.4) of the Income Tax Act.

6. Section 24 of the Rules is replaced by the following:

24. The Deputy Attorney General of Canada shall, on behalf of the Minister of National Revenue, cause a copy of an application under section 174 of the Income Tax Act, section 311 of the Excise Tax Act, section 52 of the Air Travellers Security Charge Act or section 205 of the Excise Act, 2001 to be served personally or by registered mail on each of the taxpayers named in the application and on any other persons who, in the opinion of the Court, are likely to be affected by the determination of the question.

7. (1) Subsection 29(1) of the Rules is replaced by the following:

29. (1) Where at any stage of a proceeding the interest or liability of an appellant or taxpayer or other person referred to in section 173 or 174 of the Income Tax Act, section 310 or 311 of the Excise Tax Act, section 97.58 of the Customs Act, section 51 or 52 of the Air Travellers Security Charge Act, or section 204 or 205 of the Excise Act, 2001, is transferred or transmitted to another person by assignment, bankruptcy, death or other means, a proceeding shall be stayed until the Registrar is notified of the transfer or transmission and the particulars thereof.

(2) Subsection 29(2) of the French version of the Rules is replaced by the following:

(2) Sur réception de l'avis dont il est fait mention au paragraphe (1), le greffier consulte les parties concernant les circonstances dans lesquelles l'instance doit être continuée et fait rapport de ces consultations au juge en chef.

8. The headings before section 58 of the Rules are replaced by the following:

DETERMINATION OF QUESTIONS OF LAW, FACT OR
MIXED LAW AND FACT

Question of Law, Fact or Mixed Law and Fact

9. Paragraph 58(1)(a) of the Rules is replaced by the following:

(a) for the determination, before hearing, of a question of law, a question of fact or a question of mixed law and fact raised by a pleading in a proceeding where the determination of the question may dispose of all or part of the proceeding, substantially shorten the hearing or result in a substantial saving of costs, or

10. The Rules are amended by adding the following after section 61:

Notice of Constitutional Question

61.1 A notice of constitutional question referred to in section 19.2 of the Act shall be in Form 61.1.

11. Section 62 of the Rules is replaced by the following:

62. On a hearing of a question under sections 58 and 59, each party shall serve on every other party to the hearing a factum consisting of a concise statement, without argument, of the facts and law relied on by the party, and file it, with proof of service, in the Registry not later than seven days before the hearing.

12. Section 65 of the Rules is replaced by the following:

65. All interlocutory or other applications shall be made by a notice of motion. (Form 65)

13. Subsections 102(2) and (3) of the French version of the Rules are replaced by the following:

(2) Sauf directive contraire de la Cour ou si les parties consentent à un autre arrangement, un interrogatoire qui a lieu au Canada est fait sous serment ou par affirmation solennelle comme le prévoit la Loi sur la preuve au Canada.

(3) Sauf directive contraire de la Cour ou si les parties consentent à un autre arrangement, un interrogatoire est pris en sténographie et la partie qui poursuit l'interrogatoire assure la présence d'un sténographe et le paie.

14. The portion of subsection 112(2) of the French version of the Rules before paragraph (a) is replaced by the following:

(2) Si la personne doit être interrogée à l'étranger, la directive visée au paragraphe (1) prévoit, à la demande de l'auteur de la requête, la délivrance :

15. The portion of subsection 123(4) of the Rules before paragraph (a) is replaced by the following:

(4) Subject to any direction by the Chief Justice, the Registrar, or a person designated by the Registrar or the Chief Justice, may,

16. Section 124 of the Rules and the heading before it are repealed.

17. (1) Subsection 125(1) of the Rules is replaced by the following:

125. (1) Where an appeal has not been set down for hearing or terminated by any means within four months after filing the reply or after the last day for filing the reply, whichever is later, subject to any direction by the Chief Justice, the Registrar or a person designated by the Registrar or the Chief Justice may serve on the Deputy Attorney General of Canada and on the counsel of record for the appellant or, where the appellant acts in person, on the appellant, a notice of status hearing at least 30 days before the date fixed for that hearing, and the hearing shall be held before a judge.

(2) Subparagraph 125(5)(a)(i) of the Rules is replaced by the following:

(i) if satisfied that the appeal should proceed, set time periods for the completion of any remaining steps to set down the appeal for hearing and either fix the time and place of hearing or direct the Registrar to do so within a specified time,

18. The portion of subsection 126(1) of the Rules before paragraph (a) is replaced by the following:

126. (1) The Court may, on its own initiative or at the request of a party, direct counsel for the parties, either with or without the parties, and any party not represented by counsel to appear before a judge for a pre-hearing conference to consider

19. Subsection 127(2) of the French version of the Rules is replaced by the following:

(2) Une copie du procès-verbal ou de la directive visés au paragraphe (1) est jointe au dossier de l'audience.

20. (1) Subsection 131(2) of the English version of the Rules is replaced by the following:

(2) Where the party on whom the request is served fails to serve a response as required by subsection (1), the party shall be deemed, for the purposes of the appeal only, to admit the truth of the facts or the authenticity of the documents mentioned in the request to admit.

(2) The portion of subsection 131(3) of the English version of the Rules before paragraph (a) is replaced by the following:

(3) A party shall also be deemed, for the purposes of the appeal only, to admit the truth of the facts or the authenticity of the documents mentioned in the request to admit, unless the party's response

21. Subsection 133(3) of the English version of the Rules is replaced by the following:

(3) Where an appeal is heard in camera under the authority of an enactment, disclosure of information relating to the appeal is not contempt of court unless the Court has expressly prohibited the disclosure of the information.

22. Section 134 of the Rules is replaced by the following:

134. Subject to any direction by the Chief Justice, at any time following the judgment, on requisition by the counsel or party who put an exhibit in evidence, or the person who produced it, the Registrar shall return the exhibit to the person making the requisition.

23. The Rules are amended by adding the following after section 152:

Costs in Vexatious Proceedings

152.1 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.

24. The Rules are amended by adding the following after section 172.3:

CONTEMPT OF COURT

172.4 (1) A person is guilty of contempt of court who

(a) at a hearing of the Court fails to maintain a respectful attitude, remain silent or refrain from showing approval or disapproval of the proceeding;

(b) wilfully disobeys a process or order of the Court;

(c) acts in such a way as to interfere with the orderly administration of justice or to impair the authority or dignity of the Court;

(d) is an officer of the Court and fails to perform his or her duties;

(e) is a sheriff or bailiff and does not execute a writ forthwith or does not make a return thereof; or

(f) contrary to these rules and without lawful excuse,

(i) refuses or neglects to obey a subpoena or to attend at the time and place appointed for his or her examination for discovery,
(ii) refuses to be sworn or to affirm or to answer any question put to him or her,
(iii) refuses or neglects to produce or permit to be inspected any document or other property, or
(iv) refuses or neglects to answer interrogatories or to make discovery of documents.

(2) Subject to subsection (6), before a person may be found in contempt of court, the person alleged to be in contempt shall be served with an order, made on the motion of a person who has an interest in the proceeding or at the Court's own initiative, requiring the person alleged to be in contempt

(a) to appear before a judge at a time and place stipulated in the order;

(b) to be prepared to hear proof of the act with which the person is charged, which shall be described in the order with sufficient particularity to enable the person to know the nature of the case against the person; and

(c) to be prepared to present any defence that the person may have.

(3) A motion for an order under subsection (2) may be made ex parte.

(4) An order may be made under subsection (2) if the Court is satisfied that there is a prima facie case that contempt has been committed.

(5) An order under subsection (2) shall be personally served, together with any supporting documents, unless otherwise ordered by the Court.

(6) In a case of urgency, a person may be found in contempt of court for an act committed in the presence of a judge in the exercise of his or her functions and condemned at once, provided that the person has first been called on to justify his or her behaviour.

(7) A finding of contempt shall be based on proof beyond a reasonable doubt.

(8) A person alleged to be in contempt may not be compelled to testify.

(9) Where the Court considers it necessary, it may request the assistance of the Attorney General of Canada or any other person in relation to any proceedings for contempt.

(10) Where a person is found to be in contempt, a judge may order, in addition to any other order made in respect of the proceedings, any or all of the following:

(a) that the person be imprisoned for a period of less than two years;

(b) that the person pay a fine;

(c) that the person do or refrain from doing any act;

(d) that the person's property be sequestered; and

(e) that the person pay costs.

25. Section 173 of the Rules is repealed.

26. Section 177 of the Rules is repealed.

27. (1) The heading "INTITULÉ" in the Table of Forms in Schedule I to the French version of the Rules is replaced by the heading "TITRE".

(2) The Table of Forms in Schedule I to the Rules is amended by replacing the title of Form 21(1)(b) with the following:

Reference under section 173 of the Income Tax Act, section 310 of the Excise Tax Act, section 97.58 of the Customs Act, section 51 of the Air Travellers Security Charge Act or section 204 of the Excise Act, 2001, as the case may be

(3) The Table of Forms in Schedule I to the Rules is amended by replacing the title of Form 21(1)(c) with the following:

Reference under section 174 of the Income Tax Act, section 311 of the Excise Tax Act, section 52 of the Air Travellers Security Charge Act or section 205 of the Excise Act, 2001, as the case may be

(4) The Table of Forms in Schedule I to the Rules is amended by adding the following after the reference to "Form 21(1)(d)":

21(1)(e) Notice of Appeal from a Confirmation or Redetermination of the Fair Market Value of an Ecological Gift

(5) The Table of Forms in Schedule I to the Rules is amended by adding the following after the reference to "Form 45":

61.1 Notice of Constitutional Question

(6) The Table of Forms in Schedule I to the Rules is amended by replacing the title of Form 82(4)B with the following:

Affidavit of Documents (Corporation or Canada Customs and Revenue Agency)

28. Paragraph (b) of Form 21(1)(a) of Schedule I to the Rules is replaced by the following:

(b) Identify the assessment(s) under appeal: include date of assessment(s) and, if the appeal is under the Income Tax Act, include taxation year(s) or, if the appeal is under the Excise Tax Act, the Customs Act, the Air Travellers Security Charge Act or the Excise Act, 2001, include the period to which the assessment(s) relate(s),

29. (1) The title of Form 21(1)(b) of Schedule I to the Rules is replaced by the following:

REFERENCE UNDER SECTION 173 OF THE INCOME TAX ACT, SECTION 310 OF THE EXCISE TAX ACT, SECTION 97.58 OF THE CUSTOMS ACT, SECTION 51 OF THE AIR TRAVELLERS SECURITY CHARGE ACT OR SECTION 204 OF THE EXCISE ACT, 2001, AS THE CASE MAY BE

(2) Form 21(1)(b) of Schedule I to the Rules is amended by replacing the introductory paragraph with the following:

IN THE MATTER of an agreement that a question should be determined by the Court under section 173 of the Income Tax Act, section 310 of the Excise Tax Act, section 97.58 of the Customs Act, section 51 of the Air Travellers Security Charge Act or section 204 of the Excise Act, 2001, as the case may be.

30. (1) The title of Form 21(1)(c) of Schedule I to the Rules is replaced by the following:

REFERENCE UNDER SECTION 174 OF THE INCOME TAX ACT, SECTION 311 OF THE EXCISE TAX ACT, SECTION 52 OF THE AIR TRAVELLERS SECURITY CHARGE ACT OR SECTION 205 OF THE EXCISE ACT, 2001, AS THE CASE MAY BE

(2) Form 21(1)(c) of Schedule I to the Rules is amended by replacing the introductory paragraph with the following:

IN THE MATTER of an application by the Minister of National Revenue made under section 174 of the Income Tax Act, section 311 of the Excise Tax Act, section 52 of the Air Travellers Security Charge Act or section 205 of the Excise Act, 2001, as the case may be, for the determination of a question.

31. Schedule I to the Rules is amended by adding the following after Form 21(1)(d):

FORM 21(1)(e)

NOTICE OF APPEAL FROM A CONFIRMATION OR
REDETERMINATION OF THE FAIR MARKET VALUE
OF AN ECOLOGICAL GIFT

- - - - - - - - - - - - - - - - - - -

TAX COURT OF CANADA

BETWEEN:

(name)

Appellant,

and

HER MAJESTY THE QUEEN,

Respondent.

NOTICE OF APPEAL

(a) In the case of an individual state home address in full and in the case of a corporation, state address in full of principal place of business in the province in which the appeal is being instituted,

(b) Set out the date of the certificate issued by the Minister of the Environment and the fair market value of the property as confirmed or redetermined by the Minister,

(c) Specify what the appellant alleges is the fair market value of the property,

(d) Relate the material facts relied on,

(e) Specify the issues to be decided,

(f) Set forth the reasons the appellant intends to rely on,

(g) Indicate the relief sought, and

(h) Date of notice.

32. Paragraph 4 of Form 45 of Schedule I to the French version of the Rules is replaced by the following:

4. (Indiquer sous forme de paragraphes distincts et numérotés consécutivement chaque allégation de fait sur laquelle s'appuie la réplique.)

33. Schedule I to the Rules is amended by adding the following after Form 45:

FORM 61.1

NOTICE OF CONSTITUTIONAL QUESTION

- - - - - - - - - - - - - - - - - - -

TAX COURT OF CANADA

BETWEEN:

(name)

Appellant or Applicant,

and

HER MAJESTY THE QUEEN,

Respondent.

NOTICE OF CONSTITUTIONAL QUESTION

The (identify party) intends to question the constitutional validity, applicability or effect (state which) of (identify the particular legislative provision).

The question is to be argued on (day), (date), at (time), at (place). (if known)

The following are the material facts giving rise to the constitutional question: (set out concisely the material facts that relate to the constitutional question and attach pleadings or other documentation underlying the proceedings before the Court).

The following is the legal basis for the constitutional question: (Set out concisely the legal basis for each constitutional question and identify the nature of the constitutional principles to be argued.)

TO: The Attorney General of Canada
The Attorney General of (each province)

34. The note at the end of Form 65 of Schedule I to the Rules is replaced by the following:

NOTE that if the proceeding in which the motion is made is a reference under section 173 or 174 of the Income Tax Act, section 310 or 311 of the Excise Tax Act, section 97.58 of the Customs Act, section 51 or 52 of the Air Travellers Security Charge Act or section 204 or 205 of the Excise Act, 2001, the style of cause shall be the same as in the document instituting the proceeding and the body of the notice of motion shall be adjusted accordingly.

35. The first paragraph of Form 82(4)A of Schedule I to the French version of the Rules is replaced by the following:

Je soussigné, (nom et prénom du déposant), de la/du (ville, municipalité, etc.) de........, dans le/la (province, territoire, etc.) de........, l'appelant (ou la mention appropriée) dans la présente action, DÉCLARE SOUS SERMENT (ou AFFIRME SOLENNELLEMENT) QUE :

36. Form 82(4)B of Schedule I to the Rules is replaced by the following:

FORM 82(4)B

AFFIDAVIT OF DOCUMENTS
(CORPORATION OR CANADA CUSTOMS
AND REVENUE AGENCY)

- - - - - - - - - - - - - - - - - - -

TAX COURT OF CANADA

BETWEEN:

(name)

Appellant,

and

HER MAJESTY THE QUEEN,

Respondent.

AFFIDAVIT OF DOCUMENTS

I, (full name of deponent), of the (City, Town, etc.) of ......., in the (Province, Territory, etc.) of............, MAKE OATH AND SAY (or AFFIRM):

1. I am the (state the position held by the deponent in the corporation or the Canada Customs and Revenue Agency) of the appellant (or as may be) in this action.

2. Now shown to me and marked Exhibit "A" to this affidavit is a list of documents.

3. I have conducted a diligent search of the corporation's (or the Canada Customs and Revenue Agency's) records and made appropriate enquiries of others to inform myself in order to make this affidavit. This affidavit discloses, to the full extent of my knowledge, information and belief, all documents relating to any matter in question in this action that are or have been in the possession, control or power of the corporation (or the Canada Customs and Revenue Agency).

4. I have listed in Schedule A those documents that are in the possession, control or power of the corporation (or the Canada Customs and Revenue Agency) and that it (or the Minister) does not object to producing for inspection.

5. I have listed in Schedule B those documents that are or were in the possession, control or power of the corporation (or the Canada Customs and Revenue Agency) and that it (or the Minister) objects to producing because they are privileged, and I have stated in Schedule B the grounds for each such claim.

6. I have listed in Schedule C those documents that were formerly in the possession, control or power of the corporation (or the Canada Customs and Revenue Agency) but are no longer in its possession, control or power and I have stated in Schedule C when and how it lost possession or control of or power over them and their present location.

7. The corporation (or the Canada Customs and Revenue Agency) has never had in its possession, control or power any documents relating to any matter in question in this proceeding other than those listed in Schedules A, B and C.

37. The first paragraph of Form 103(1) of Schedule I to the Rules is replaced by the following:

(To be used only for a party to the proceeding, a person to be examined for discovery or on behalf or in place of a party or a person to be cross-examined on an affidavit. For the examination of any other person, use a subpoena (Form 103(4)).)

38. The first paragraph of Form 114 of Schedule I to the French version of the Rules is replaced by the following:

Je soussigné, (nom et prénom du déposant), de la/du (ville, municipalité, etc.) de ........, dans le/la (province, territoire, etc.) de ........, en ma qualité de (préciser en quelle qualité le déposant fait la déclaration sous serment), DÉCLARE SOUS SERMENT (ou AFFIRME SOLENNELLEMENT) que les réponses suivantes au questionnaire du (date) et déposé par le/la (identifier la partie interrogatrice) sont vraies au mieux de ma connaissance directe et de ce que je tiens pour véridique sur la foi de renseignements :

39. The portion of Form 123 of Schedule I to the Rules after paragraph (f) is replaced by the following:

The person who can answer any inquiries about the convenience or acceptability of other dates or places for the hearing,

(a) on behalf of the appellant is .......... who can be reached by telephone at number .......... in ..........,

(b) on behalf of the respondent is .......... who can be reached by telephone at number .......... in ..........

Dated at ............... this ............... day of ............... 20..

______________________________
Counsel for appellant

______________________________
Counsel for respondent

(Note: It is recommended that the Registrar be consulted regarding available dates before this application is submitted.)

40. Subparagraph 1(b)(iii) of Tariff A of Schedule II to the Rules is replaced by the following:

(iii) a reference under section 173 or 174 of the Income Tax Act, section 310 or 311 of the Excise Tax Act, section 97.58 of the Customs Act, section 51 or 52 of the Air Travellers Security Charge Act or section 204 or 205 of the Excise Act, 2001, and

41. The portion of section 1.1 of Tariff A of Schedule II to the Rules before paragraph (a) is replaced by the following:

1.1 For the purposes of applying this Tariff and Tariff B with respect to appeals from a determination or redetermination of the fair market value of an object by the Canadian Cultural Property Export Review Board established under the Cultural Property Export and Import Act, or from a confirmation or redetermination of the fair market value of an ecological gift by the Minister of the Environment pursuant to subsection 118.1(10.4) of the Income Tax Act, the three classes of proceedings are as follows:

42. Paragraphs 1(1)(a) to (e) of Tariff B of Schedule II to the Rules are replaced by the following:

(a) for all services in a proceeding prior to examination for discovery not otherwise listed in the following paragraphs,

Class A: $350
Class B: $525
Class C: $700

(b) for a discovery of documents or inspection of property,

Class A: $100
Class B: $150
Class C: $200

(c) for a motion, examination for discovery, taxation of costs, taking evidence before hearing or cross-examination on an affidavit (including preparation), for each day or part day,

Class A: $350
Class B: $525
Class C: $700

(d) for preparation for and attendance at a pre-hearing conference,

all classes: $350

(e) for preparation for and attendance at a status hearing,

all classes: $125

(f) for an agreed statement of facts, an agreement regarding documents or a notice to admit,

Class A: $250
Class B: $375
Class C: $500

(g) for preparation for hearing,

Class A: $350
Class B: $625
Class C: $950

(h) for conduct of the hearing, for each day or part day,

Class A: $1,000
Class B: $1,500
Class C: $2,000

and, in the discretion of the taxing officer, a fee may be allowed for second counsel, which shall not exceed 50 per cent of the amount set out in this paragraph for first counsel;

(i) for all services after judgment,

Class A: $150
Class B: $300
Class C: $450

43. The Rules are amended by replacing the number "19" with the number "20" wherever it occurs in the following provisions:

(a) subsection 19(4); and

(b) Form 166.1 of Schedule I.

44. The English version of the Rules is amended by replacing the words "Chief Judge" with the words "Chief Justice" wherever they occur in the following provisions:

(a) section 14;

(b) subsections 29(2) and (3);

(c) subsection 141(2);

(d) subsection 153(1); and

(e) subsection 175(2).

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Rules.)

Description

The Tax Court of Canada Act provides that rules regulating the pleadings, practice and procedure in the Tax Court are established by a rules committee, subject to the approval of the Governor in Council.

The attached amended Rules were prepared by the rules committee and concern the Tax Court of Canada Rules (General Procedure).

Many of the changes to the Rules reflect the broadened jurisdiction of the Tax Court of Canada pursuant to the coming in force of the Excise Act, 2001 (S.C. 2002, c. 22), Part V.1 of the Customs Act (S.C. 2001, c. 25), the Air Travellers Security Charge Act (S.C. 2002, c. 9, Part 2, s. 5) and subsection 169(1.1) of the Income Tax Act. The amendments in this regard seek to ensure that appeals to the Court pursuant to these Acts are covered by the Court's rules of procedure.

The amendments also reflect the coming in force of the Courts Administration Service Act (S.C. 2002, c. 8), pursuant to which the Tax Court of Canada was granted the status of a superior court of record. Rules have been created to address the issues of contempt of court, costs in vexatious proceedings, and constitutional questions. References in the English version of the Rules to "Chief Judge" have also been amended to read "Chief Justice". Sections 173 and 177 of the Rules have also been repealed to reflect the new administrative structure created by the Courts Administration Service Act.

Section 58 of the Rules has been broadened to permit the determination before hearing of questions of law, fact and mixed law and fact. Sections 125 and 126 have been amended to facilitate recourse by the Court or the parties to status hearings and pre-hearing conferences. Section 124 has been deleted further to the decision of the Federal Court of Appeal in the matter of Gernhart v. R. The costs tariff has also been increased to bring it in line with the costs tariffs in other jurisdictions and several items have also been added to the Tariff.

There are also amendments of a purely technical nature to ensure greater consistency between the English and French versions of the Rules, and to reflect legislative changes of a technical, as opposed to substantive, nature.

Alternatives

No other alternatives were considered as the Tax Court of Canada Act requires the Court's rules to be amended by way of regulation.

Benefits and Costs

These amendments mostly reflect the broadened jurisdiction of the Tax Court of Canada and the changes brought to the Court by the Courts Administration Service Act. Other amendments were brought with a view to facilitating the resolution of matters before the Tax Court, and with reflecting the increased cost of litigation. It is expected that these changes will have little financial impact.

Consultation

The amendments were published in substantially the same form in the Canada Gazette, Part I, of August 30, 2003, following which no comments were received.

Contact

J. David Power
Legal Counsel and Administrative Officer
Courts Administration Service
200 Kent Street, 2nd Floor
Ottawa, Ontario
K1A 0M1
Telephone: (613) 947-0322
FAX: (613) 943-8449
E-mail: david.power@cas-satj.gc.ca

Footnote a

R.S., c. 51 (4th Supp.), s. 7

Footnote b

S.C. 2002, c. 8. s. 78

Footnote c

S.C. 2002, c. 8. s. 78

Footnote 1

SOR/90-688

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