Jenna Clark

The appellants, who participated in the Global Learning Gifting Initiative tax shelter, brought motions to have their appeals allowed on the basis of abuse of process.

They alleged that the Minister of National Revenue intentionally delayed confirming objections and engaged in a 'divide and conquer' strategy to wear down taxpayers.

The Tax Court of Canada dismissed the motions, finding that the Minister's slow pace in processing objections and other complained-of conduct did not amount to an abuse of the Court's process in the appellants' specific appeals.

The Minister of National Revenue brought an application under section 174 of the Income Tax Act to determine a common question regarding a tax shelter, naming several taxpayers.

The Minister subsequently withdrew the application.

The named taxpayers sought costs.

The Court held that costs for the application should be determined and awarded immediately, rather than waiting for the conclusion of the taxpayers' individual appeals, because the application was a separate proceeding.

The Court awarded varying amounts of costs to the taxpayers based on their individual circumstances and representation.