2 total
Costs awarded at 50% of actual fees; Tariff held to be merely a default provision.
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.
Trusts found resident in Ontario for tax purposes because central management and control was exercised there.
The Minister of Revenue reassessed two trusts, the Herman Grad 2000 Family Trust and the Marya Grad Spousal Trust, for provincial taxes on the basis that they were resident in Ontario, not Alberta, during the 2006 to 2009 taxation years.
The trusts appealed, arguing their trustees resided in Alberta and exercised management and control there.
The Superior Court of Justice dismissed the appeals, finding that the central management and control of both trusts was actually exercised by the settlor and his financial advisor, both resident in Ontario, who directed the trusts' investment and distribution decisions.
