Précis: The taxpayer appealed GST assessments and was successful on two out of three issues. This led to it being entitled to a refund of $38,865 plus interest and penalties. Because it had made a settlement offer as favourable as the Court’s decision it claimed substantial indemnity costs of $90,888, being 80% of their actual costs incurred after the date of the offer. The Crown objected to the amount of costs claimed on the bases that they were not reasonably incurred and on the basis that they claimed the fee arrangement with the client limited the fees to $19,432 which, they argued, should be the basis from which the 80% was computed.
Ike Enterprises v. R. – TCC: Court awards costs roughly 3 times the amount of the recoveryPlus >