David Everett

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.

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.