Tax Court

Representation in Tax Court (Informal Procedure) as your accountant

Following the objection review process, the Canada Revenue Agency (the CRA) sends a formal letter explaining its reasoning of either maintaining (confirming) or varying (adjusting) the (re)assessment.

When you disagree with the CRA objection result, you can appeal it to Tax Court in two ways:

  1. Under Informal Procedure; or
  2. Under General Procedure (you require to hire a tax lawyer).

Fiscal Expert Ltd. fiscalists can represent you at the Tax Court ONLY under Informal Procedure pursuant to 18.14 Tax Court of Canada Act, R.S.C., 1985, c. T-2

In order to qualify to file an appeal to the Tax Court under Informal procedure, the (re)assessment dispute shall be:

  • The aggregate amount of $25,000 of income tax;
  • $50,000 of a denied income tax loss; or
  • $50,000 of GST/HST (which includes a dispute of New Housing Rebate)

Based on Tax Court rules, the “aggregate amount” of $25,000 limit is calculated as including only the federal portion of income taxes (re)assessed, plus any penalties. Each taxation year is considered separately although might be dealt with in the same Tax Court file. This means that as long as the disputed amount does not exceed the aggregate amount in any one taxation year when appealing multiple years, you are entitled to elect to proceed under Informal procedure.

Fiscal Expert Ltd. fiscalist will help you to obtain, gather and organize all information and documentation required and necessary in order to ensure that the Tax Court has all the documentation and information required to properly adjudicate the dispute.

Filing Notice of Appeal

As soon as the Notice of Appeal is filed with the Court registrar, the Court staff reviews and confirms that the Notice of Appeal conforms to the Court’s rules and then the Court serves it on the Attorney General of Canada, through the Department of Justice. The Department of Justice has 60 days within which it has to file and serve a Reply to the Notice of Appeal.

We (on your behalf) will have then 30 days to file an Answer if we determine that it is required or necessary based on the Reply provided. If no Answer provided, the Tax Cout’s rules deem that we deny all the allegations of fact as stated in the Reply. 

All the documents filed to the Tax Court, including the Notice of Appeal, the Reply and the Answer, are referred to as the “Pleadings”, and they form the Court Record and basis for the litigation. Pleadings are deemed to close at the time an Answer is filed and served or the time for doing so expires.   

Tax Court Hearing

In the Informal Procedure, the parties submit their pleadings and then prepare with their witnesses (if any) for a hearing immediately. When the Tax Court registrar determines a date for hearing, it will issue orders to both parties containing the date and time for appearance.

During the hearing, all evidence must be introduced by way of witness testimony and the witnesses themselves are subject to cross-examination.  

Once the hearing is concluded, the Tax Court Judge issues written reasons for his or her decision either immediately or at the later date. In issuing its decision the Tax Court jurisdiction is limited by law to the following reliefs:

  • Dismissing the Appeal; or
  • Allowing the Appeal and
  • Vacating the (re)assessment;
  • Varying the (re)assessment; or
  • Referring the (re)assessment back to the CRA for review and reassessment.

Fiscal Expert Ltd. fiscalist can assist you throughout the entire Informal process at the Tax Court and represent you as your accountants pursuant to 18.14 Tax Court of Canada Act, R.S.C., 1985, c. T-2