Tax Court of Canada informal procedure

A seller or buyer meets it after a dispute with the CRA over an assessment is not resolved on objection. The CRA’s publication P148 says that if you do not agree with its decision on your objection, you can appeal to the Tax Court of Canada. The Court describes two procedures, the Informal Procedure and the General Procedure.

How it works

Under section 18(1), sections 18.1 to 18.28 apply to an Income Tax Act appeal where the taxpayer elects it in the notice of appeal, or later as the Court’s rules allow, and the amounts in issue are within the section’s dollar limits. Section 18(2) adds appeals concerned only with assessed interest or a suspension under subsection 188.2(2). The Court says a taxpayer above the limits may still choose it by agreeing to limit the appeal. Parties may appear in person or be represented by counsel or an agent, and under section 18.11 the Court may, on the Attorney General’s application, order that the General Procedure provisions apply.

What to ask

• Which tax years and amounts are in dispute, compared with the limits in section 18
• Whether the election appears in the notice of appeal
• Whether the dispute could move to the General Procedure

See notice of objection and challenges to a purchase price allocation.