Income Tax Act

Marginal note:Common questions

• 174 (1) The Minister may apply to the Tax Court of Canada for a determination of a question if the Minister is of the opinion that the question is common to assessments or proposed assessments in respect of two or more taxpayers and is a question of law, fact or mixed law and fact arising out of

  • (a) one and the same transaction or occurrence or series of transactions or occurrences; or

  • (b) substantially similar transactions or occurrences or series of transactions or occurrences.

• Marginal note:Application to Court

  (2) An application under subsection (1)

  • (a) shall set out

    • (i) the question in respect of which the Minister requests a determination,

    • (ii) the names of the taxpayers that the Minister seeks to have bound by the determination of the question, and

    • (iii) the facts and reasons on which the Minister relies and on which the Minister based or intends to base assessments of tax payable by each of the taxpayers named in the application; and

  • (b) shall be served by the Minister on each of the taxpayers named in the application and on any other persons who, in the opinion of the Tax Court of Canada, are likely to be affected by the determination of the question,

    • (i) by sending a copy to each taxpayer so named and each other person so likely to be affected, or

    • (ii) on ex parte application by the Minister, in accordance with the directions of the Court.

• Marginal note:Determination of question by Tax Court

  (3) If the Tax Court of Canada is satisfied that a question set out in an application under this section is common to assessments or proposed assessments in respect of two or more taxpayers who have been served with a copy of the application, the Tax Court of Canada may

  • (a) make an order naming the taxpayers in respect of whom the question will be determined;

  • (b) if one or more of the taxpayers so served has or have appealed an assessment to the Tax Court of Canada in respect of which the question is relevant, make an order joining a party or parties to that or those appeals as it considers appropriate; and

  • (c) proceed to determine the question in such manner as it considers appropriate.

• Marginal note:Determination final and conclusive

  (4) Subject to subsection (4.1), if a question set out in an application under this section is determined by the Tax Court of Canada, the determination is final and conclusive for the purposes of any assessments of tax payable by the taxpayers named in the order made under paragraph (3)(a).

• Marginal note:Appeal

  (4.1) If a question set out in an application under this section is determined by the Tax Court of Canada, an appeal from the determination may, in accordance with the provisions of the Tax Court of Canada Act or the Federal Courts Act, as they relate to appeals from decisions of the Tax Court of Canada to the Federal Court of Appeal, be made by

  • (a) the Minister; or

  • (b) any taxpayer named in an order of the Court made under paragraph (3)(a) if

    • (i) the question arises out of one and the same transaction or occurrence or series of transactions or occurrences,

    • (ii) the taxpayer has appealed an assessment to the Tax Court of Canada in respect of which the question is relevant, or

    • (iii) the taxpayer has been granted leave by a judge of the Federal Court of Appeal.

• Marginal note:Binding to appeal

  (4.2) Any taxpayer named in an order made under paragraph (3)(a) in respect of a question is bound by any determination in respect of the question under an appeal made to the Federal Court of Appeal or the Supreme Court of Canada.

• Marginal note:Time during consideration of question not counted

  (5) The time between the day on which an application under this section is served on a taxpayer pursuant to subsection 174(2) and

  • (a) in the case of a taxpayer named in an order of the Tax Court of Canada pursuant to subsection 174(3), the day on which the determination becomes final and conclusive and not subject to any appeal, or

  • (b) in the case of any other taxpayer, the day on which the taxpayer is served with notice that the taxpayer has not been named in an order of the Tax Court of Canada pursuant to subsection 174(3),

  shall not be counted in the computation of

  • (c) the periods determined under subsection 152(4),

  • (d) the time for service of a notice of objection to an assessment under section 165, or

  • (e) the time within which an appeal may be instituted under section 169,

  for the purpose of making an assessment of the tax, interest or penalties payable by the taxpayer, serving a notice of objection thereto or instituting an appeal therefrom, as the case may be.