T-2

An Act respecting the Tax Court of Canada

1. This Act may be cited as the Tax Court of Canada Act.

1980-81-82-83, c. 158, s. 1.

2. In this Act,

“Associate Chief Judge” [Repealed, 2002, c. 8, s. 59]

“Associate Chief Justice” means the Associate Chief Justice of the Court;

“Chief Judge” [Repealed, 2002, c. 8, s. 59]

“Chief Justice” means the Chief Justice of the Court;

“Court” means the Tax Court of Canada;

“judge” means a judge of the Court and, unless the context otherwise requires, includes the Chief Justice and Associate Chief Justice;

“Registry”means a registry established by the Chief Administrator of the Courts Administration Service pursuant to the Courts Administration Service Act for the purposes of this Act.

R.S., 1985, c. T-2, s. 2; 2002, c. 8, s. 59.

2.1 For the purposes of this Act, "the aggregate of all amounts" means the total of all amounts assessed or determined by the Minister of National Revenue under the Income Tax Act, but does not include any amount of interest or any amount of loss determined by that Minister.

R.S., 1985, c. 51 (4th Supp.), s. 1.

2.2 (1) For the purposes of this Act, the "aggregate of supplies for the prior fiscal year" of a person means the total value of all supplies, within the meaning of Part IX of the Excise Tax Act, made by the person in the last complete fiscal year, within the meaning of that Part, that ended at least six months before the day the notice of appeal for a particular appeal of that person was filed.

(2) For the purposes of this Act, the "amount in dispute" in an appeal means

( a ) in the case of an appeal under Part V.1 of the Customs Act , the total of all amounts assessed by the Minister of National Revenue under section 97.44 of that Act;

( b ) in the case of an appeal under the Excise Act, 2001 ,

(i) the amount of duty, refund or relief that is in issue in the appeal,

(ii) any interest under that Act that is in issue in the appeal, and

(iii) any amount of duty, refund or relief under that Act, that is likely to be affected by the appeal in any other appeal, assessment or proposed assessment of the person who has brought the appeal; and

( c ) in the case of an appeal under Part IX of the Excise Tax Act ,

(i) the amount of tax, net tax and rebate, within the meaning of that Part, that is in issue in the appeal,

(ii) any interest or penalty under that Part that is in issue in the appeal, and

(iii) any amount of tax, net tax or rebate, within the meaning of that Part, that is likely to be affected by the appeal in any other appeal, assessment or proposed assessment of the person who has brought the appeal.

1990, c. 45, s. 55; 2001, c. 25, s. 100; 2002, c. 22, ss. 397, 408.

3. The Tax Court of Canada is continued under the name of the Tax Court of Canada as a superior court of record.

R.S., 1985, c. T-2, s. 3; 2002, c. 8, s. 60.

4. (1) The Tax Court of Canada shall consist of the following judges:

(a) a chief justice called the Chief Justice of the Tax Court of Canada;

(b) an associate chief justice called the Associate Chief Justice of the Tax Court of Canada; and

(c) not more than twenty other judges.

(2) The judges of the Court shall be appointed by the Governor in Council by commission under the Great Seal.

(3) Subject to subsection (4), any person may be appointed a judge of the Court who

(a) is or has been a judge of a superior court in Canada;

(b) is or has been a barrister or advocate of at least ten years standing at the bar of any province, or

(c) has, for an aggregate of at least ten years,

(i) been a barrister or advocate at the bar of any province, and

(ii) after becoming a barrister or advocate at the bar of any province, exercised powers and performed duties and functions of a judicial nature on a full-time basis in respect of a position held pursuant to a law of Canada or a province.

(4) Either the Chief Justice or the Associate Chief Justice shall be a person who is or was a member of the bar of the Province of Quebec.

R.S., 1985, c. T-2, s. 4; R.S., 1985, c. 51 (4th Supp.), s. 2; 1990, c. 45, s. 56; 1996, c. 22, s. 3; 2002, c. 8, s. 61.

5. (1) The Chief Justice, and after the Chief Justice the Associate Chief Justice, has rank and precedence over all the other judges.

(2) The other judges have rank and precedence after the Chief Justice and the Associate Chief Justice and among themselves according to seniority determined by reference to the respective times when they became judges of the Court or members of the Tax Review Board.

(3) If the office of Chief Justice is vacant, or the Chief Justice is for any reason unable to act, the powers of the Chief Justice shall be exercised and the duties of the Chief Justice shall be performed

(a) by the Associate Chief Justice;

(b) in the event of the incapacity of the Associate Chief Justice or if the office of Associate Chief Justice is vacant, by a judge designated by the Chief Justice for that purpose; or

(c) in the event of the incapacity of the judge referred to in paragraph ( b), or if the Chief Justice has not designated a judge under that paragraph, by the senior judge who is in Canada and is able and willing to act and who has not elected to hold office as a supernumerary judge under section 28 of the Judges Act.

R.S., 1985, c. T-2, s. 5; R.S., 1985, c. 51 (4th Supp.), s. 3; 2002, c. 8, s. 62.

6. (1) A judge shall reside in the National Capital Region described in the schedule to the National Capital Act or within forty kilometres thereof.

(2) [Repealed, 2002, c. 8, s. 63]

R.S., 1985, c. T-2, s. 6; 2002, c. 8, s. 63.

7. (1) Subject to subsection (2), a judge holds office during good behaviour, but is removable by the Governor General on address of the Senate and House of Commons.

(2) A judge shall cease to hold office on attaining the age of seventy-five years.

(3) A judge of the Court who holds office on March 1, 1987 may retire at the age of seventy years.

R.S., 1985, c. T-2, s. 7; R.S., 1985, c. 16 (3rd Supp.), s. 8.

8. (1) Every judge shall, before entering on the duties of their office, take an oath that they will duly and faithfully, and to the best of their skill and knowledge, execute the powers and trusts reposed in them as a judge of the Court.

(2) The oath referred to in subsection (1) shall be administered to the Chief Justice before the Governor General, and to the other judges by the Chief Justice or, in the absence or incapacity of the Chief Justice, by any other judge.

R.S., 1985, c. T-2, s. 8; 2002, c. 8, s. 64.

9. (1) Subject to subsection (3), any judge or former judge of a superior court in Canada or any judge or former judge of any other court who was appointed under an Act of the legislature of a province may, at the request of the Chief Justice made with the approval of the Governor in Council, act as a judge of the Court and while so acting has all the powers of a judge of the Court and shall be referred to as a deputy judge of the Court.

(2) No request may be made under subsection (1) to a judge of a court in a province without the consent of the chief justice or chief judge of the court of which he or she is a member, or of the attorney general of the province.

(3) The Governor in Council may approve the making of requests pursuant to subsection (1) in general terms or for particular periods or purposes, and may limit the number of persons who may act under this section.

(4) A person who acts as a judge for a period under subsection (1) shall be paid a salary for the period at the rate fixed by the Judges Act for a judge of the Court, other than the Chief Justice or the Associate Chief Justice, less any amount otherwise payable to the person under that Act in respect of the period, and shall also be paid the travel allowances that a judge is entitled to be paid under that Act.

R.S., 1985, c. T-2, s. 9; 1998, c. 19, s. 289; 2002, c. 8, ss. 65, 81(E).

10. For each office of judge there shall be the additional office of supernumerary judge that a judge of the Court may elect under the Judges Act to hold.

1980-81-82-83, c. 158, s. 10.

11. For each of the offices of Chief Justice and Associate Chief Justice, there shall be an additional office of judge that the Chief Justice or Associate Chief Justice, respectively, may elect under the Judges Act to hold.

R.S., 1985, c. T-2, s. 11; 2002, c. 8, s. 66(E).

12. (1) The Court has exclusive original jurisdiction to hear and determine references and appeals to the Court on matters arising under the Air Travellers Security Charge Act, the Canada Pension Plan, the Cultural Property Export and Import Act, Part V.1 of the Customs Act, the Employment Insurance Act, the Excise Act, 2001, Part IX of the Excise Tax Act, the Income Tax Act, the Old Age Security Act, the Petroleum and Gas Revenue Tax Act and the Softwood Lumber Products Export Charge Act, 2006 when references or appeals to the Court are provided for in those Acts.

(2) The Court has exclusive original jurisdiction to hear and determine appeals on matters arising under the War Veterans Allowance Act and the Civilian War-related Benefits Act and referred to in section 33 of the Veterans Review and Appeal Board Act.

(3) The Court has exclusive original jurisdiction to hear and determine questions referred to it under section 51 or 52 of the Air Travellers Security Charge Act, section 97.58 of the Customs Act, section 204 or 205 of the Excise Act, 2001, section 310 or 311 of the Excise Tax Act, section 173 or 174 of the Income Tax Act or section 62 or 63 of the Softwood Lumber Products Export Charge Act, 2006.

(4) The Court has exclusive original jurisdiction to hear and determine applications for extensions of time under section 45 or 47 of the Air Travellers Security Charge Act, subsection 28(1) of the Canada Pension Plan, section 33.2 of the Cultural Property Export and Import Act, section 97.51 or 97.52 of the Customs Act, subsection 103(1) of the Employment Insurance Act, section 197 or 199 of the Excise Act, 2001, section 304 or 305 of the Excise Tax Act, or section 166.2 or 167 of the Income Tax Act.

(5) The Court has exclusive original jurisdiction to hear and determine applications referred to in subsection 188.2(4) of the Income Tax Act by a registered charity for a postponement of a period of suspension of the authority of the charity to issue official receipts referred to in Part XXXV of the Income Tax Regulations.

R.S., 1985, c. T-2, s. 12; R.S., 1985, c. 51 (4th Supp.), s. 4; 1990, c. 45, s. 57; 1991, c. 49, s. 221; 1992, c. 24, s. 18; 1995, c. 18, s. 98, c. 38, s. 6; 1996, c. 23, ss. 187, 188; 1998, c. 19, s. 290; 1999, c. 10, s. 46; 2001, c. 25, s. 101; 2002, c. 9, ss. 6, 10, c. 22, ss. 398, 408; 2005, c. 19, s. 61; 2006, c. 11, s. 27, c. 13, s. 121.

13. The Court has the power, jurisdiction and authority to deal with and impose punishment for contempt against the Court, whether or not committed in the face of the Court.

R.S., 1985, c. T-2, s. 13; 2002, c. 8, s. 67.

14. (1) Subject to the rules of Court, any judge may sit and act at any time and at any place in Canada for the transaction of the business of the Court, and, where the judge so sits or acts, that judge constitutes the Court.

(2) Subject to the rules of Court, all arrangements that may be necessary or proper for the transaction of the business of the Court and the assignment from time to time of judges to transact that business shall be made by the Chief Justice.

(3) A proceeding before the Court may, by order of the Court, be heard partly at one place and partly at another.

R.S., 1985, c. T-2, s. 14; R.S., 1985, c. 51 (4th Supp.), s. 5; 2002, c. 8, s. 68(E).

14.1 Any services or assistance in connection with the conduct of the Court's hearings, the security of the Court and its premises and of staff of the Courts Administration Service that may, having regard to the circumstances, be found necessary shall be provided, at the request of the Chief Justice, by the Royal Canadian Mounted Police or any other police force that the Governor in Council may designate.

R.S., 1985, c. 51 (4th Supp.), s. 5; 2002, c. 8, s. 69.

15. Where the time limited for the doing of a thing under this Act expires or falls on a holiday or a Saturday, the thing may be done on the day next following that is not a holiday or Saturday.

R.S., 1985, c. T-2, s. 15; R.S., 1985, c. 51 (4th Supp.), s. 5.

16. If a judge resigns or is appointed to another court or otherwise ceases to hold office, the judge may, at the request of the Chief Justice, at any time within eight weeks after that event, give judgment in any matter previously tried by or heard before the judge as if he or she had continued in office.

R.S., 1985, c. T-2, s. 16; R.S., 1985, c. 48 (1st Supp.), s. 1, c. 51 (4th Supp.), s. 5; 2002, c. 8, s. 70(E).

16.1 A hearing before the Court may, on the application of any party to a proceeding, other than Her Majesty in right of Canada or a Minister of the Crown, be held in camera if it is established to the satisfaction of the Court that the circumstances of the case justify in camera proceedings.

R.S., 1985, c. 51 (4th Supp.), s. 5.

16.2 (1) A party who instituted a proceeding in the Court may, at any time, discontinue that proceeding by written notice.

(2) Where a proceeding is discontinued under subsection (1), it is deemed to be dismissed as of the day on which the Court receives the written notice.

R.S., 1985, c. 51 (4th Supp.), s. 5.

16.3 There shall be paid out of the Consolidated Revenue Fund any costs awarded to any person against the Crown in any proceedings in the Court.

R.S., 1985, c. 51 (4th Supp.), s. 5.

17. Subject to sections 18 and 18.29 to 18.33, the provisions of sections 17.1 to 17.8 apply in respect of any proceedings over which the Court has jurisdiction.

R.S., 1985, c. T-2, s. 17; R.S., 1985, c. 51 (4th Supp.), s. 5.

17.1 (1) A party to a proceeding in respect of which this section applies may appear in person or be represented by counsel, but where the party wishes to be represented by counsel, only a person who is referred to in subsection (2) shall represent the party.

(2) Every person who may practise as a barrister, advocate, attorney or solicitor in any of the provinces may so practise in the Court and is an officer of the Court.

R.S., 1985, c. 51 (4th Supp.), s. 5.

17.2 (1) Unless the Act under which the proceeding arises provides otherwise, a proceeding in respect of which this section applies shall be instituted by filing an originating document in the form set out in the rules of Court and by paying the filing fee in accordance with those rules.

(2) The originating document shall be filed

(a) by depositing the original and two copies of the document in the Registry of the Court;

(b) by forwarding by mail the original and two copies of the document to the Registry of the Court; or

(c) by any other means, including electronic means, in the form and manner provided for in the rules of Court.

(2.1) The date of filing of an originating document in the Registry of the Court is deemed to be the day on which the document is received by the Registry.

(2.2) Where an originating document is filed in accordance with paragraph (2)(c), the party who instituted the proceeding or that party’s counsel shall forthwith send the original and two copies of the document to the Registry of the Court.

(3) Where the original and two copies of the originating document have been received by the Registry of the Court and the filing fee has been paid as required by this section, an officer of the Registry of the Court shall, after verifying the accuracy of the copies, forthwith, on behalf of the party who instituted the proceeding, serve the originating document on Her Majesty in right of Canada by transmitting the copies to the office of the Deputy Attorney General of Canada.

(4) When the copies have been transmitted to the office of the Deputy Attorney General of Canada under subsection (3), a certificate signed by an officer of the Registry of the Court respecting the date of filing and the date of transmission of the copies shall be delivered or forwarded by registered mail to the party who instituted the proceeding or that party’s counsel at the address appearing on the originating document, or at such other address as may have been communicated to the Registry of the Court for the purpose.

(5) A certificate referred to in subsection (4) is evidence of the date of filing and the date of service of the originating document referred to in the certificate.

R.S., 1985, c. 51 (4th Supp.), s. 5; 1998, c. 19, s. 291.

17.3 (1) Where the aggregate of all amounts in issue in an appeal under the Income Tax Act is $25,000 or less, or where the amount of the loss that is determined under subsection 152(1.1) of that Act and that is in issue is $50,000 or less, an oral examination for discovery shall not be held unless the parties consent thereto or unless one of the parties applies therefor and the Court is of the opinion that the case could not properly be conducted without that examination for discovery.

(2) In considering an application under subsection (1), the Court may consider the extent to which the appeal is likely to affect any other appeal of the party who instituted the appeal or relates to an issue that is common to a group or class of persons.

(3) The Court shall order an oral examination for discovery in an appeal referred to in subsection (1), on the request of one of the parties, where the party making the request agrees to submit to an oral examination for discovery by the other party and to pay the costs in respect of that examination for discovery of that other party in accordance with the tariff of costs set out in the rules of Court.

R.S., 1985, c. 51 (4th Supp.), s. 5; 1993, c. 27, s. 216.

17.4 When the Court has rendered its judgment in a proceeding in respect of which this section applies, a copy of the judgment and any written reasons for it shall be sent to each party to the proceeding.

R.S., 1985, c. 51 (4th Supp.), s. 5; 2002, c. 8, s. 71.

17.5 (1) In a proceeding in respect of which this section applies, costs adjudged to Her Majesty in right of Canada shall not be disallowed or reduced on taxation by reason only that counsel who earned the costs, or in respect of whose services the costs are charged, was a salaried officer of Her Majesty in right of Canada performing those services in the discharge of that counsel’s duty and remunerated therefor by salary, or for that or any other reason was not entitled to recover any costs from Her Majesty in right of Canada in respect of the services so rendered.

(2) Any money or costs awarded to Her Majesty in right of Canada in a proceeding in respect of which this section applies shall be paid to the Receiver General.

R.S., 1985, c. 51 (4th Supp.), s. 5.

17.6 An appeal from a judgment of the Court in a proceeding in respect of which this section applies lies to the Federal Court of Appeal in accordance with section 27 of the Federal Courts Act.

R.S., 1985, c. 51 (4th Supp.), s. 5; 2002, c. 8, s. 72.

17.7 A party wishing to appeal to the Federal Court of Appeal from a judgment of the Court in a proceeding in respect of which this section applies shall give notice of appeal to the Registry of the Federal Court of Appeal and all provisions of the Federal Courts Act and the rules made under that Act governing appeals to the Federal Court of Appeal apply, with any modifications that the circumstances require, in respect of the appeal.

R.S., 1985, c. 51 (4th Supp.), s. 5; 2002, c. 8, s. 72.

17.8 All fees payable to the Registry under this Act in respect of any proceeding in respect of which this section applies shall be paid into the Consolidated Revenue Fund, except that where the Minister of Justice has entered into an arrangement whereby such fees are collected by an official of a provincial court, the fees so collected may be dealt with in accordance with the arrangement.

R.S., 1985, c. 51 (4th Supp.), s. 5.

18. (1) The provisions of sections 18.1 to 18.28 apply in respect of appeals under the Income Tax Act where a taxpayer has so elected in the taxpayer’s notice of appeal or at such later time as may be provided in the rules of Court, and

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

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

(2) The provisions of sections 18.1 to 18.28 also apply in respect of an appeal, on a taxpayer’s election in the taxpayer’s notice of appeal or at any later time as may be provided in the rules of the Court, if the only subject-matter of the appeal is

(a) an amount of interest assessed under the Income Tax Act; or

(b) the validity of a suspension referred to in subsection 188.2(2) of that Act.

R.S., 1985, c. T-2, s. 18; R.S., 1985, c. 51 (4th Supp.), s. 5; SOR/93-295, ss. 3, 4; 2005, c. 19, s. 62.

18.1 Every judgment that allows an appeal referred to in subsection 18(1) shall be deemed to include a statement that the aggregate of all amounts in issue not be reduced by more than $12,000 or that the amount of the loss in issue not be increased by more than $24,000, as the case may be.

R.S., 1985, c. 51 (4th Supp.), s. 5; SOR/93-295, ss. 3, 4.

18.11 (1) The Court may order, on application of the Attorney General of Canada, that sections 17.1 to 17.8 apply in respect of an appeal referred to in section 18.

(2) The Court shall grant an application under subsection (1) where

(a) the outcome of the appeal is likely to affect

(i) any other appeal of the appellant, or

(ii) any other assessment or proposed assessment of the appellant, whether or not that assessment or proposed assessment relates to the same taxation year; and

(b) the aggregate of all amounts

(i) in issue in the appeal,

(ii) likely to be affected in the other appeal referred to in subparagraph (a)(i), and

(iii) likely to be affected in the other assessment or proposed assessment referred to in subparagraph (a)(ii),

exceeds $12,000.

(3) The Court shall grant an application under subsection (1) where the amount of interest that is in issue in an appeal exceeds $12,000.

(4) For the purpose of calculating the amount of interest in issue for the purpose of subsection (3), no account shall be taken of any interest that accrues after the date of the notice of assessment that is the subject-matter of the appeal.

(5) The Court shall grant an application under subsection (1) where it is of the opinion that the issue that is the subject-matter of the appeal is common to a group or class of persons.

(6) The Court may, on making an order under subsection (1), other than an order granting an application pursuant to subsection (2) or (3), order that all reasonable and proper costs of the appellant be borne by Her Majesty in right of Canada.

R.S., 1985, c. 51 (4th Supp.), s. 5; 1993, c. 27, s. 217; SOR/93-295, s. 3.

18.12 Where, before the start of the hearing of an appeal referred to in subsection 18(1), it appears to the Court that

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

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

as the case may be, the Court shall order that sections 17.1 to 17.8 apply in respect of the appeal unless the appellant elects to limit the appeal to $12,000 or $24,000, as the case may be.

R.S., 1985, c. 51 (4th Supp.), s. 5; SOR/93-295, ss. 3, 4.

18.13 Where, after the hearing of an appeal referred to in subsection 18(1) has started but before a judgment is rendered on the appeal, it appears to the Court that

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

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

as the case may be, the Court shall, on motion of either party or of its own motion, order that sections 17.1 to 17.8 apply with respect to the appeal unless the appellant elects to limit the appeal to $12,000 or $24,000, as the case may be, or unless the amount of the excess is too small to justify a re-hearing in accordance with the general procedure, taking into account the inconvenience and expense that would result to the parties and the interests of justice and fairness.

R.S., 1985, c. 51 (4th Supp.), s. 5; SOR/93-295, ss. 3, 4.

18.14 All parties to an appeal referred to in section 18 may appear in person or may be represented by counsel or an agent.

R.S., 1985, c. 51 (4th Supp.), s. 5.

18.15 (1) An appeal referred to in section 18 shall be made in writing and shall set out, in general terms, the reasons for the appeal and the relevant facts, but no special form of pleadings is required unless the Act out of which the appeal arises expressly provides otherwise.

(2) An appeal referred to in section 18 may be brought in the form set out in the rules of Court.

(3) An appeal referred to in section 18 shall be instituted by

(a) filing the original of the written appeal referred to in subsection (1); and

(b) paying $100 as a filing fee.

(3.1) The written appeal referred to in subsection (1) shall be filed

(a) by depositing the original of the written appeal in the Registry of the Court;

(b) by mailing the original of the written appeal to the Registry of the Court; or

(c) by using any other means, including electronic means, in the form and manner provided for in the rules of Court.

(3.2) The date of filing of a written appeal in the Registry of the Court is deemed to be the day on which the written appeal is received by the Registry.

(3.3) Where a written appeal is filed in accordance with paragraph (3.1)(c), the party who instituted the proceeding or that party’s counsel or agent shall forthwith send the original of the written appeal to the Registry of the Court.

(3.4) The Court may, on application made by an individual in the written appeal referred to in subsection (1), waive the payment of the filing fee where the Court is satisfied that its payment would cause severe financial hardship to the individual.

(3.5) The Court shall decide whether to grant an application made under subsection (3.4) solely on the basis of the information contained in the written appeal referred to in subsection (1).

(4) Notwithstanding the provisions of the Act out of which an appeal arises, the Court, in hearing an appeal referred to in section 18, is not bound by any legal or technical rules of evidence in conducting a hearing for the purposes of that Act, and all appeals referred to in section 18 shall be dealt with by the Court as informally and expeditiously as the circumstances and considerations of fairness permit.

R.S., 1985, c. 51 (4th Supp.), s. 5; 1998, c. 19, s. 292.

18.16 (1) The Minister of National Revenue shall file a reply to a notice of appeal within sixty days after the day on which the Registry of the Court transmits to that Minister the notice of appeal unless the appellant consents, before or after the expiration of the sixty day period, to the filing of that reply after the sixty day period or the Court allows the Minister, on application made before or after the expiration of the sixty day period, to file the reply after that period.

(2) Notwithstanding subsection (1), where an application is made pursuant to subsection 18.11(1) to have an appeal heard in accordance with the general procedure, the Minister of National Revenue need not file a reply to the notice of appeal until the Court decides which procedure applies in respect of the appeal.

(3) Where the Court dismisses an application referred to in subsection (2), the Minister of National Revenue shall file a reply to a notice of appeal on or before the later of

(a) a day that is sixty days after the day on which the Registry of the Court transmits to that Minister the notice of appeal, and

(b) a day that is thirty days after the day the written judgment dismissing the application is received by the Minister from the Registry of the Court,

unless the appellant consents, before or after the time referred to in paragraph (a) or (b), to the filing of the reply at a later date or the Court allows the Minister, on application made before or after the time referred to in paragraph (a) or (b), to file the reply after that time.

(4) The Minister of National Revenue may file a reply to a notice of appeal after the period limited under subsection (1) or (3), as the case may be, and where that Minister files the reply after that period or after the extension of time consented to by the appellant or granted by the Court, the allegations of fact contained in the notice of appeal are presumed to be true for the purposes of the appeal.

(5) The Minister of National Revenue may file a reply to a notice of appeal by mail and any such reply filed by mail shall be deemed to have been filed on the day on which it is mailed.

R.S., 1985, c. 51 (4th Supp.), s. 5; 1993, c. 27, s. 218.

18.17 (1) Subject to subsection (1.1), the Court shall fix a date for the hearing of an appeal referred to in section 18 that is not later than one hundred and eighty days or, where the Court is of the opinion that it would be impracticable in the circumstances to fix a date for the hearing of the appeal within that period, three hundred and sixty-five days after the last day on which the Minister of National Revenue must file a reply to the notice of appeal pursuant to subsection 18.16(1) or (3).

(1.1) The Court may, in exceptional circumstances, fix a date for the hearing of an appeal referred to in section 18 at any time after the periods referred to in subsection (1).

(2) The Court may grant a request by a party to have an appeal heard after the date referred to in subsection (1) where the other parties consent thereto or where it would be appropriate to delay the hearing of the appeal until judgment has been rendered in another case before the Court or any other court in Canada in which the issue is the same or substantially the same as that raised in the appeal.

R.S., 1985, c. 51 (4th Supp.), s. 5; 1993, c. 27, s. 219.

18.18 (1) For the purpose of calculating a time limit for the purpose of section 18.16, 18.17 or 18.22,

( a) the period beginning on December 21 in any year and ending on January 7 of the next year shall be excluded; and

( b) the period during which proceedings are stayed in accordance with subsection 239(4) of the Income Tax Act shall be excluded.

(2) For the purpose of calculating a time limit for the purposes of section 18.3003 or 18.3005, the following periods shall be excluded:

( a) the period beginning on December 21 in any year and ending on January 7 of the next year; and

( b) the period during which proceedings are stayed in accordance with subsection 106(3) of the Customs Act, subsection 219(3) of the Excise Act, 2001 or subsection 327(4) of the Excise Tax Act.

R.S., 1985, c. 51 (4th Supp.), s. 5; 1990, c. 45, s. 58; 2001, c. 25, s. 102; 2002, c. 22, ss. 399, 408.

18.19 (1) When the date of a hearing has been fixed, a copy of the notice of hearing shall, not later than thirty days before that date, be sent by registered mail to all parties, or served on all parties.

(2) A party to an appeal may waive that party’s right to be notified of a hearing in accordance with subsection (1).

R.S., 1985, c. 51 (4th Supp.), s. 5; 2002, c. 8, s. 73.

18.2 (1) The Court shall adjourn the hearing of an appeal where, in the opinion of the Court, it would be impractical in all the circumstances to proceed on the day fixed for the hearing.

(2) The Court may grant a request by a party to have the hearing of an appeal adjourned where the other parties consent thereto or where it would be appropriate to delay that hearing until judgment has been rendered in another case before the Court or before any other court in Canada in which the issue is the same or substantially the same as that raised in the appeal.

R.S., 1985, c. 51 (4th Supp.), s. 5.

18.21 (1) Where an appellant does not appear on the day fixed for the hearing, or obtain an adjournment of the hearing, of an appeal, the Court shall, on application by the respondent and whether or not the appellant has received notice of the application, order that the appeal be dismissed, unless the Court is of the opinion that circumstances justify that the appeal be set down for hearing at a later date.

(2) An appellant whose appeal has been dismissed pursuant to subsection (1) may apply to have the order of dismissal set aside and the appeal set down for hearing.

(3) The Court may set aside an order of dismissal made under subsection (1) where

(a) it would have been unreasonable in all the circumstances for the appellant to have attended the hearing; and

(b) the appellant applied to have the order of dismissal set aside as soon as circumstances permitted the application to be brought but, in any event, not later than one hundred and eighty days after the day on which the order was mailed to the appellant.

R.S., 1985, c. 51 (4th Supp.), s. 5.

18.22 (1) The Court shall, other than in exceptional circumstances, render judgment on an appeal referred to in section 18 not later than ninety days after the day on which the hearing is concluded.

(2) For the purposes of subsection (1), “exceptional circumstances” includes circumstances in which written material that the Court requires in order to render a judgment was not received in time to permit the Court to consider it and to render judgment within the time limit imposed by that subsection.

(3) On the disposition of an appeal referred to in section 18, a copy of the decision and written reasons for the decision, if any, shall be forwarded by registered mail to the Minister of National Revenue and to each party to the appeal.

R.S., 1985, c. 51 (4th Supp.), s. 5; 1993, c. 27, s. 220; 2002, c. 8, s. 74.

18.23 The Court shall give reasons for its judgment but, except where the Court deems it advisable in a particular case to give reasons in writing, the reasons given by it need not be in writing.

R.S., 1985, c. 51 (4th Supp.), s. 5.

18.24 An appeal from a judgment of the Court in a proceeding in respect of which this section applies lies to the Federal Court of Appeal in accordance with section 27 of the Federal Courts Act.

R.S., 1985, c. 51 (4th Supp.), s. 5; 2002, c. 8, s. 75.

18.25 If the Minister of National Revenue appeals a judgment referred to in section 18.24, the reasonable and proper costs of the taxpayer in respect of the appeal shall be paid by Her Majesty in right of Canada.

R.S., 1985, c. 51 (4th Supp.), s. 5; 2002, c. 8, s. 75.

18.26 (1) Where an appeal referred to in section 18 is allowed, the Court

(a) shall reimburse to the appellant the filing fee paid by the appellant under paragraph 18.15(3)(b); and

(b) where the judgment reduces the aggregate of all amounts in issue or the amount of interest in issue, or increases the amount of loss in issue, as the case may be, by more than one-half, may award costs to the appellant in accordance with the rules of Court.

(2) The Court may, in deciding whether to award costs, consider any written offer of settlement made at any time after the notice of appeal is filed.

R.S., 1985, c. 51 (4th Supp.), s. 5; 1998, c. 19, s. 293.

18.27 The Governor in Council may make regulations increasing the amount in dispute referred to in paragraphs 18.3002(3)(c) and 18.3008(c) and subparagraph 18.3009(1)(c)(i) to any amount that does not exceed $12,000.

R.S., 1985, c. 51 (4th Supp.), s. 5; 1990, c. 45, s. 59; 1998, c. 19, s. 294; 2006, c. 11, s. 31.

18.28 A judgment on an appeal referred to in section 18 shall not be treated as a precedent for any other case.

R.S., 1985, c. 51 (4th Supp.), s. 5.

18.29 (1) The provisions of section 18.14, subsections 18.15(1) and (2), paragraph 18.15(3)( a), subsections 18.15(3.1) to (3.3) and (4), paragraph 18.18(1)( a), section 18.19, subsection 18.22(3) and sections 18.23 and 18.24 apply, with such modifications as the circumstances require, in respect of appeals arising under

(a) Part I of the Canada Pension Plan;

(b) Parts IV and VII of the Employment Insurance Act;

(c) the Old Age Security Act, to the extent that a ground of the appeal involves a decision or determination as to income; and

(d) the War Veterans Allowance Act, or Part XI of the Civilian War-related Benefits Act from an adjudication of the Veterans Review and Appeal Board as to what constitutes income or as to the source of income.

(2) Where an appeal arises out of one of the Acts referred to in subsection (1) and that Act contains a provision that is inconsistent with one of the provisions of this Act referred to in that subsection, the provision of the Act out of which the appeal arises prevails to the extent of the inconsistency.

(3) The provisions referred to in subsection (1) also apply, with any modifications that the circumstances require, in respect of applications for

(a) an extension of time under

(i) subsection 28(1) of the Canada Pension Plan,

(ii) section 33.2 of the Cultural Property Export and Import Act,

(iii) section 97.51 or 97.52 of the Customs Act,

(iv) subsection 103(1) of the Employment Insurance Act,

(v) section 197 or 199 of the Excise Act, 2001,

(vi) section 304 or 305 of the Excise Tax Act,

(vii) section 166.2 or 167 of the Income Tax Act, or

(viii) section 56 or 58 of the Softwood Lumber Products Export Charge Act, 2006; and

(b) a postponement of a portion of a period of suspension of authority to issue tax receipts under subsection 188.2(4) of the Income Tax Act.

(4) In respect of an application for an extension of time under the provisions referred to in paragraph (3)(a) or for a postponement referred in paragraph (3)(b), if either party to the application makes a request to the Court for reasons for its judgment, the Court shall give such reasons but those reasons need not be in writing.

R.S., 1985, c. 51 (4th Supp.), s. 5; 1990, c. 45, s. 60; 1991, c. 49, s. 222; 1992, c. 24, s. 19; 1993, c. 27, s. 221; 1994, c. 26, s. 67(E); 1995, c. 18, s. 99, c. 38, s. 7; 1996, c. 23, s. 184; 1998, c. 19, s. 295; 1999, c. 10, s. 47; 2000, c. 30, s. 178; 2001, c. 25, s. 103; 2002, c. 9, ss. 7, 10, c. 22, ss. 400, 408; 2005, c. 19, s. 63; 2006, c. 13, s. 122.

18.3 (1) The provisions of subsection 18(2) and sections 18.1 to 18.28 apply, with such modifications as the circumstances require, in respect of appeals arising under the Petroleum and Gas Revenue Tax Act where the appellant has so elected in the appellant’s notice of appeal or at such later time as may be provided in the rules of Court and the amount of the tax and penalties in issue is equal to or less than $7,000.

(2) Where a provision of the Petroleum and Gas Revenue Tax Act is inconsistent with one of the provisions of this Act referred to in subsection (1), the provision of the Petroleum and Gas Revenue Tax Act prevails to the extent of the inconsistency.

R.S., 1985, c. 51 (4th Supp.), s. 5.

18.3001 Subject to section 18.3002, this section and sections 18.3003 to 18.301 apply, with any modifications that the circumstances require, to an appeal under

( a) the Excise Act, 2001 if

(i) a person has so elected in the notice of appeal for an appeal under that Act or at such later time as may be provided in the rules of Court, and

(ii) the amount in dispute does not exceed $25,000; and

( b) Part V.1 of the Customs Act or Part IX of the Excise Tax Act if a person has so elected in the notice of appeal for an appeal under that Act or at such later time as may be provided in the rules of Court.

1990, c. 45, s. 61; 1998, c. 19, s. 296; 2001, c. 25, s. 104; 2002, c. 22, ss. 401, 408.

18.3002 (1) Where the Attorney General of Canada so requests, the Court shall order that sections 17.1, 17.2 and 17.4 to 17.8 apply in respect of an appeal in respect of which sections 18.3003 and 18.3007 to 18.302 would otherwise apply.

(2) A request under subsection (1) shall not be made after sixty days after the day the Registry of the Court transmits to the Minister of National Revenue the notice of appeal unless

( a) the Court is satisfied that the Attorney General of Canada became aware of information that justifies the making of the request after the sixty days had elapsed or that the request is otherwise reasonable in the circumstances; or

( b) the person who has brought the appeal consents to the making of the request after the sixty days have elapsed.

(3) The Court shall, on making an order under subsection (1), order that all reasonable and proper costs of the person who has brought the appeal be borne by Her Majesty in right of Canada where

( a) in the case of an appeal under Part V.1 of the Customs Act, the amount in dispute does not exceed $10,000;

( b) in the case of an appeal under the Excise Act, 2001, the total of sales by the person for the prior calendar year did not exceed $1,000,000; and

( c) in the case of an appeal under Part IX of the Excise Tax Act, the amount in dispute does not exceed $7,000 and the aggregate of supplies for the prior fiscal year of the person did not exceed $1,000,000.

1990, c. 45, s. 61; 1998, c. 19, s. 297; 2001, c. 25, s. 105; 2002, c. 22, ss. 402, 408.

18.3003 (1) Subject to subsection (2), the Minister of National Revenue shall file a reply to a notice of appeal referred to in section 18.3001 within sixty days after the day the Registry of the Court transmits to that Minister the notice of appeal, unless the person who has brought the appeal consents, before or after the sixty day period has elapsed, to the filing of that reply after the expiration of those sixty days or the Court allows the Minister, on application made before or after the expiration of those sixty days, to file the reply after that period.

(2) The Minister of National Revenue may file a reply to a notice of appeal after the period referred to in subsection (1) and, where the Minister does not file the reply within the sixty day period or within the extension of time consented to by the person who has brought the appeal or granted by the Court, the allegations of fact contained in the notice of appeal are presumed to be true for the purposes of the appeal.

1990, c. 45, s. 61; 1993, c. 27, s. 222; 2001, c. 25, s. 106(E).

18.3004 Where the Court makes an order pursuant to subsection 18.3002(1) in respect of an appeal, or where the person who has brought the appeal has not made an election referred to in section 18.3001 in respect of the appeal, that person may consent to the filing of a reply by the Minister of National Revenue after the day the reply would otherwise be required to be filed.

1990, c. 45, s. 61.

18.3005 (1) Subject to subsection (2), the Court shall fix a date for the hearing of an appeal referred to in section 18.3001 that is not later than one hundred and eighty days or, where the Court is of the opinion that it would be impracticable in the circumstances to fix a date for the hearing of the appeal within that period, three hundred and sixty-five days after the last day on which the Minister of National Revenue must file a reply to the notice of appeal pursuant to subsection 18.3003(1).

(2) The Court may, in exceptional circumstances, fix a date for the hearing of an appeal referred to in section 18.3001 at any time after the periods referred to in subsection (1).

1990, c. 45, s. 61; 1993, c. 27, s. 223.

18.3006 [Repealed, 1993, c. 27, s. 223]

18.3007 (1) The Court may, if the circumstances so warrant, make no order as to costs or order that the person who brought the appeal be awarded costs, notwithstanding that under the rules of Court costs would be adjudged to Her Majesty in right of Canada, or make an order that person be awarded costs, notwithstanding that under the rules of Court no order as to costs would be made, if

( a) an order has been made under subsection 18.3002(1) in respect of the appeal;

( b) the appeal is not an appeal referred to in subsection 18.3002(3); and

( c) in the case of an appeal

(i) under Part V.1 of the Customs Act, the amount in dispute does not exceed $50,000,

(ii) under the Excise Act, 2001, the amount in dispute in the appeal does not exceed $50,000 and the aggregate of sales by the person for the prior calendar year did not exceed $6,000,000, or

(iii) under Part IX of the Excise Tax Act, the amount in dispute in the appeal does not exceed $50,000 and the aggregate of supplies for the prior fiscal year of the person did not exceed $6,000,000.

(2) Where costs are awarded under subsection (1), the award shall be made at the time of the order disposing of the appeal.

1990, c. 45, s. 61; 2001, c. 25, s. 107; 2002, c. 22, ss. 403, 408.

18.3008 If a judgment on an appeal referred to in section 18.3001 is appealed by the Minister of National Revenue under section 27 of the Federal Courts Act, the reasonable and proper costs of the appeal under that section of the person who brought the appeal referred to in section 18.3001 shall be borne by Her Majesty in right of Canada if that appeal was an appeal for which

( a) in the case of an appeal under Part V.1 of the Customs Act, the amount in dispute does not exceed $10,000;

( b) in the case of an appeal under the Excise Act, 2001, the amount in dispute does not exceed $25,000 and the aggregate of sales by the person for the prior calendar year did not exceed $1,000,000; and

( c) in the case of an appeal under Part IX of the Excise Tax Act, the amount in dispute does not exceed $7,000 and the aggregate of supplies for the prior fiscal year of the person did not exceed $1,000,000.

1990, c. 45, s. 61; 2001, c. 25, s. 108; 2002, c. 8, s. 76, c. 22, ss. 404, 408.

18.3009 (1) If an appeal referred to in section 18.3001 is allowed, the Court shall reimburse to the person who brought the appeal the filing fee paid by that person under paragraph 18.15(3)( b). The Court may, in accordance with the rules of Court, award costs to that person if the judgement reduces the amount in dispute by more than one half and

( a) in the case of an appeal under Part V.1 of the Customs Act, the amount in dispute does not exceed $10,000;

( b) in the case of an appeal under the Excise Act, 2001

(i) the amount in dispute does not exceed $25,000, and

(ii) the total of sales by the person for the prior calendar year did not exceed $1,000,000; or

( c) in the case of an appeal under Part IX of the Excise Tax Act,

(i) the amount in dispute does not exceed $7,000, and

(ii) the aggregate of supplies for the prior fiscal year of the person did not exceed $1,000,000.

(2) The Court may, in deciding under subsection (1) whether to award costs, consider any written offer of settlement made at any time after the notice of appeal is filed.

1990, c. 45, s. 61; 1998, c. 19, s. 298; 2001, c. 25, s. 109; 2002, c. 22, ss. 405, 408.

18.301 For the purpose of calculating the amount in dispute in an appeal, no account shall be taken of any interest that accrues after the date of the notice of assessment that is the subject-matter of the appeal.

1990, c. 45, s. 61; 1993, c. 27, s. 224.

18.302 The provisions of sections 18.14 and 18.15, subsections 18.16(5) and 18.17(2) and sections 18.19 to 18.24 and 18.28 apply, with such modifications as the circumstances require, in respect of appeals referred to in section 18.3001.

1993, c. 27, s. 224.

18.31 (1) Where an application has been made under section 173 of the Income Tax Act for the determination of a question of law, fact or mixed law and fact, sections 17.1 to 17.8 apply, with such modifications as the circumstances require, in respect of the determination of the question.

(2) If it is agreed under section 51 of the Air Travellers Security Charge Act, section 97.58 of the Customs Act, section 204 of the Excise Act, 2001, section 310 of the Excise Tax Act or section 62 of the Softwood Lumber Products Export Charge Act, 2006 that a question should be determined by the Court, sections 17.1, 17.2 and 17.4 to 17.8 apply, with any modifications that the circumstances require, in respect of the determination of the question.

R.S., 1985, c. 51 (4th Supp.), s. 5; 1990, c. 45, s. 62; 2001, c. 25, s. 110; 2002, c. 9, ss. 8, 10, c. 22, ss. 406, 408; 2006, c. 13, s. 123.

18.32 (1) Where an application has been made under section 174 of the Income Tax Act for the determination of a question of law, fact or mixed law and fact in respect of two or more taxpayers, the application or determination of the question shall, subject to section 18.33, be determined in accordance with sections 17.1 to 17.8, with such modifications as the circumstances require.

(2) If an application has been made under section 52 of the Air Travellers Security Charge Act, section 205 of the Excise Act, 2001, section 311 of the Excise Tax Act or section 63 of the Softwood Lumber Products Export Charge Act, 2006 for the determination of a question, the application or determination of the question shall, subject to section 18.33, be determined in accordance with sections 17.1, 17.2 and 17.4 to 17.8, with any modifications that the circumstances require.

R.S., 1985, c. 51 (4th Supp.), s. 5; 1990, c. 45, s. 63; 2002, c. 9, ss. 9, 10, c. 22, s. 407; 2006, c. 13, s. 124.

18.33 (1) The Attorney General of Canada or any taxpayer in respect of whom an application referred to in section 18.32 is made may request that sections 18.14 and 18.15, subsection 18.22(3) and sections 18.23 to 18.27 apply in respect of the application or determination of the question.

(2) Where all parties to an application referred to in subsection 18.32(1) so agree and there is a taxpayer in respect of whom the application is made whose amount of tax and penalties in issue or amount of loss in issue does not exceed the amount referred to in paragraph 18(1)(a) or (b), as the case may be, the Court shall grant the request referred to in subsection (1).

(2.1) Where all parties to an application referred to in subsection 18.32(2) so agree, the Court shall grant the request referred to in subsection (1).

(3) The Court may grant a request referred to in subsection (1) where it is of the opinion that the interests of justice would best be served by having the provisions referred to in that subsection apply in respect of the application referred to in subsection 18.32(1) and there is a taxpayer in respect of whom the application is made whose amount of tax and penalties in issue or amount of loss in issue does not exceed the amount referred to in paragraph 18(1)(a) or (b), as the case may be.

(4) Where the Court grants a request referred to in subsection (1), sections 18.14 and 18.15, subsection 18.22(3) and sections 18.23 to 18.27 apply, with such modifications as the circumstances require, to the application or determination of the question.

(5)