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Motions to examine non-party father and compel production of brokerage records granted in shareholder benefit appeals.
The respondent Minister brought motions under sections 86 and 99 of the Tax Court of Canada Rules (General Procedure) seeking to examine the appellants' father as a non-party and to compel a brokerage firm to produce account records.
The Minister alleged the appellants received unreported shareholder benefits from offshore trading accounts.
The Court granted the motions, finding the father had relevant information not obtainable elsewhere and that the brokerage records were likely relevant to tracing the funds.
Respondent awarded enhanced costs beyond the Tariff following successful Rule 58 application.
Following a successful Rule 58 application, the Respondent sought enhanced costs beyond the Tariff.
The Court considered the factors in subsection 147(3) of the Tax Court of Canada Rules (General Procedure), noting the importance of the issues, the volume of work, and the precedential value of the decision.
The Court awarded the Respondent costs under the Tariff, plus an additional $48,800, and $1,000 for the costs submissions.
TFSA advantage charge under sections 207.05 and 207.06 is a constitutional tax, not a penalty.
The appellant brought a motion under Rule 58 to determine whether the advantage charge imposed by sections 207.05 and 207.06 of the Income Tax Act is a tax or a penalty, and whether it is unconstitutional as an improper delegation of taxing power.
The Tax Court of Canada held that the charge is a tax, not a penalty, and that the provisions are constitutional because Parliament did not improperly delegate rate-setting authority to the Minister.
