The applicant was wholly successful in its appeal to the Federal Court of Appeal, which awarded costs in the Tax Court of Canada to the applicant.
On a motion to determine those costs, the applicant sought a lump sum award of approximately $450,000, representing 75% of its counsel fees, while the respondent argued for the Tariff amount of $6,500.
The court applied the factors in Rule 147(3) of the Tax Court of Canada Rules, noting the large amount in issue, the importance and complexity of the general anti-avoidance rule (GAAR) issues, and the volume of work.
The court rejected the respondent's argument that a principled reason is required to depart from the Tariff, holding that the Tariff is merely a default.
The court awarded the applicant $300,000 for the appeal (50% of actual fees) plus disbursements, and additional costs for the motion itself at 50% of actual fees.
