Tax Court of Canada Act (R.S.C., 1985, c. T-2)

Marginal note:Further application

• 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.

• Marginal note:Inconsistent provisions

  (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.

Marginal note:Application — Excise Act, 2001, Customs Act, and Excise Tax Act

18.3001 Subject to section 18.3002, this section and sections 18.3003, 18.3005 and 18.3008 to 18.302 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;

• (b) Part V.1 of the Customs 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; and

• (c) Part IX of the Excise Tax Act 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 $50,000.

Marginal note:Limit — Excise Act, 2001

18.30011 Every judgment that allows an appeal referred to in paragraph 18.3001(a) is deemed to include a statement that the amount in dispute not be reduced by more than $25,000.

Marginal note:Limit — Excise Tax Act

18.30012 Every judgment that allows an appeal referred to in paragraph 18.3001(c) is deemed to include a statement that the amount in dispute not be reduced by more than $50,000.

Marginal note:General procedure to apply

• 18.3002 (1) If the Attorney General of Canada so requests, the Court shall order that

  • (a) in the case of an appeal referred to in paragraph 18.3001(a) or (b), sections 17.1, 17.2 and 17.4 to 17.8 apply to an appeal in respect of which sections 18.3003, 18.3005 and 18.3008 to 18.302 would otherwise apply; and

  • (b) in the case of an appeal referred to in paragraph 18.3001(c), sections 17.1 to 17.8 apply to an appeal in respect of which sections 18.3003, 18.3005 and 18.3008 to 18.302 would otherwise apply.

• Marginal note:Time for request

  (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.

• Marginal note:Costs

  (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.

Marginal note:Order for general procedure — Excise Act, 2001

18.30021 If, before the start of the hearing of an appeal referred to in paragraph 18.3001(a), it appears to the Court that the amount in dispute exceeds $25,000, the Court shall order that sections 17.1, 17.2 and 17.4 to 17.8 apply in respect of the appeal unless the appellant elects to limit the appeal to $25,000.

Marginal note:Order for general procedure — Excise Tax Act

18.30022 If, before the start of the hearing of an appeal referred to in paragraph 18.3001(c), it appears to the Court that the amount in dispute exceeds $50,000, 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 $50,000.

Marginal note:Order at hearing — Excise Act, 2001

18.30023 If, after the hearing of an appeal referred to in paragraph 18.3001(a) has started but before a judgment is rendered on the appeal, it appears to the Court that the amount in dispute exceeds $25,000, the Court shall, on motion of either party or of its own motion, order that sections 17.1, 17.2 and 17.4 to 17.8 apply with respect to the appeal unless

• (a) the appellant elects to limit the appeal to $25,000; or

• (b) 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.

Marginal note:Order at hearing — Excise Tax Act

18.30024 If, after the hearing of an appeal referred to in paragraph 18.3001(c) has started but before a judgment is rendered on the appeal, it appears to the Court that the amount in dispute exceeds $50,000, 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

• (a) the appellant elects to limit the appeal to $50,000; or

• (b) 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.

Marginal note:Time limit for reply to notice of appeal

• 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.

• Marginal note:Where reply not filed in time

  (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.

Marginal note:Time limit — general procedure

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.

Marginal note:Time for hearing

• 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).

• Marginal note:Exceptional circumstances

  (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).

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

Marginal note:Costs

• 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.

• Marginal note:Time for order

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

Marginal note:Costs on further appeal

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.

Marginal note:Costs

• 18.3009 (1) In an appeal referred to in section 18.3001, the Court may, subject to the rules of Court, award costs. In particular, the Court may award costs to the person who brought the appeal if the judgment 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.

• Marginal note:Consideration of offers

  (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.

Marginal note:Interest accruing

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.

Marginal note:Provisions to apply

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.