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Tax Court of Canada Rules (General Procedure) (SOR/90-688a)

Regulations are current to 2021-04-20 and last amended on 2014-02-07. Previous Versions

Costs (continued)

Costs on Discontinuance

 Where under section 16.2 of the Act a party has discontinued a proceeding, the other party may tax the costs thereof and, if the taxed costs are not paid within four days after taxation, may enforce payment as if judgment therefor had been granted.

Costs on Settlement

 Where a proceeding is settled on the basis that a party shall pay or recover costs and the amount of costs is not included in or determined by the settlement, the costs may be taxed under sections 153 to 159 on the filing of a copy of the minutes of settlement in the Registry.

Costs on Failure to Elect under Subsection 18(1) of the Act

 On an appeal under the Income Tax Act, the Court may refuse or reduce costs otherwise payable to an appellant who, in circumstances in which the appellant could make an election under subsection 18(1) of the Act, does not make such an election.

  • SOR/95-113, s. 10

Taxation of Costs

 Subject to the directions of the Court costs shall be taxed under sections 153 to 159.

Special Provisions

  •  (1) Unless the Court otherwise directs, and whatever the result of the proceeding,

    • (a) the costs of and occasioned by an amendment of a pleading made without leave shall be borne by the party making the amendment,

    • (b) the costs of or occasioned by an application to extend the time fixed by these rules or by a direction for doing an act, shall be borne by the party making the application,

    • (c) the costs of proving a document shall be borne by the party proving the document, if no request to admit the authenticity of the document was served under section 130,

    • (d) the costs of proving a document shall be allowed to the party proving the document if a request to admit the authenticity of the document was served under section 130 and the authenticity of the document was not admitted, and

    • (e) the costs of proving a fact shall be allowed to the party proving the fact, if a request to admit the fact was served under section 130 and the fact was not admitted, and the failure to do so has not been found by the Court to have been based on reasonable grounds.

  • (2) Upon a taxation, such costs as may be allowed under subsection (1) shall be allowed, by way of set off or otherwise, without a special direction.

Liability of Counsel for Costs

  •  (1) Where a counsel for a party has caused costs to be incurred improperly or without reasonable cause or to be wasted by undue delay, misconduct or other default, the Court may make a direction,

    • (a) disallowing some or all of the costs as between the counsel and the client,

    • (b) directing the counsel to reimburse the client for any costs that the client has been ordered to pay to any other party, and

    • (c) requiring the counsel to indemnify any other party against costs payable by that party.

  • (2) A direction under subsection (1) may be made by the Court on its own initiative or on the motion of any party to the proceeding, but no such direction shall be made unless the counsel is given a reasonable opportunity to make representations to the Court.

  • (3) The Court may direct that notice of a direction against a counsel under subsection (1) be given to the client in the manner specified in the direction.

Costs in Vexatious Proceedings

 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.

  • SOR/2004-100, s. 23

Taxation of Costs


  •  (1) The taxing officer shall be the Registrar and any other officer of the Registry designated by the Chief Justice as a taxing officer.

  • (2) Where for any reason there would otherwise be a delay in the taxation of a bill of costs, a judge may tax the bill of costs.

  • (3) The taxing officer may direct that the taxation of a bill of costs be conducted by teleconference, by videoconference or by a combination of both and may specify the party responsible for establishing the communication.

  • SOR/2004-100, s. 44(E)
  • SOR/2014-26, s. 22

Taxation of Costs — Considerations

 Where party and party costs are to be taxed, the taxing officer shall tax and allow the costs in accordance with Schedule II, Tariff B and the officer shall consider,

  • (a) the amounts in issue,

  • (b) the importance of the issues,

  • (c) the complexity of the issues,

  • (d) the volume of work, and

  • (e) any other matter that the Court has directed the taxing officer to consider.

Taxation at Instance of Party Entitled

  •  (1) A party entitled to costs may obtain a notice of appointment for taxation of costs from the appropriate taxing officer on filing with the taxing officer a bill of costs and a copy of the direction or other document giving rise to the party’s entitlement to costs. (Form 155)

  • (2) The notice and the bill of costs shall be served on every party interested in the taxation at least seven days before the date fixed for the taxation.

Taxation at Instance of Party Liable

  •  (1) Where a party entitled to costs fails or refuses to file or serve a bill of costs for taxation within a reasonable time, any party liable to pay the costs may obtain a notice to deliver a bill of costs for taxation from the appropriate taxing officer. (Form 156)

  • (2) The notice shall be served on every party interested in the taxation, at least twenty-one days before the date fixed for the taxation.

  • (3) On being served with the notice, the person required to deliver a bill of costs shall file and serve a copy of the bill on every party interested in the taxation, at least seven days before the date fixed for the taxation.

  • (4) Where a party required to deliver a bill of costs for taxation fails to do so at the time set out in the notice, and thereby prejudices another party, the taxing officer may fix the costs of the defaulting party at an appropriate sum in order to prevent further prejudice to the other party.

Powers of Taxing Officer

  •  (1) A taxing officer may direct production of books and documents and give directions for the conduct of a taxation.

  • (2) The taxing officer may, in his or her discretion, award or refuse the costs of a taxation to either party, and fix those costs.

  • (3) No disbursements other than fees paid to the Registry shall be taxed or allowed unless it is established that the disbursement was made or that the party is liable for it.

  • (4) The taxing officer may allow all services, sales, use or consumption taxes and other like taxes paid or payable on any counsel fees and disbursements allowed if it is established that such taxes have been paid or are payable and are not otherwise reimbursed or reimbursable in any manner whatever, including, without restriction, by means of claims for input tax credits in respect of such taxes.

  • SOR/96-503, s. 3

Certificate of Costs

 On the taxation of costs, the taxing officer shall set out in a certificate of costs the amount of costs taxed and allowed. (Form 158)

Review of Taxation

 Upon motion of a party who is dissatisfied with the taxation, made within thirty days of the date of a certificate of costs, the Court may review the taxation and give such direction as may be just.

Security for Costs

Where Available

 Where it appears that the appellant is resident outside of Canada, the Court on application by the respondent may give such direction regarding security for costs as is just.

When to be Made

 An application for security for costs may be made only after the respondent has delivered a reply to the notice of appeal.

Amount and Form of Security

 The amount and form of security and the time for payment into Court or otherwise giving the required security shall be determined by the Court.

Effect of Direction

 An appellant who has been directed to give security for costs may not, until the security has been given, take any step in the appeal unless the Court directs otherwise.

Default of Appellant

 Where the appellant defaults in giving the security required, the Court on application may dismiss the appeal.

Amount May be Varied

 The amount of security may be increased or decreased at any time.

Notice of Compliance

 On giving the security required, the appellant shall forthwith give notice of compliance to the respondent.

Payment Into and Out of Court

  •  (1) A person who pays money into Court shall do so by delivering to the Registry

    • (a) a bill of exchange drawn on a bank, trust company, credit union or caisse populaire, or such other bill of exchange as may be authorized by order of the Court, that is payable to the order of the Receiver General of Canada; and

    • (b) three copies of a tender of payment into Court. (Form 166.1)

  • (2) A payment into Court is effective on the day the bill of exchange is paid after presentation for payment.

  • (3) Where a payment is effective, the Registry shall return a copy of the tender of payment into Court to the person making the payment.

  • SOR/95-113, s. 11
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