A&E Precision Fabricating and Machine Shop Inc. v. R. – FCA: Tax Court has no Jurisdiction over Collection Matters

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http://decisions.fca-caf.gc.ca/en/2013/2013fca173/2013fca173.html

A&E Precision Fabricating and Machine Shop Inc. v. The Queen[1] (June 26, 2013) is a decision of the Federal Court of Appeal where the taxpayer appealed to increase a cost award against CRA. The main point of the appeal concerned the quantum of witness fees and is of little interest. A subsidiary question was whether CRA was entitled to set off the costs payable to the taxpayer against the taxpayer’s tax debt owing. The Federal Court of Appeal once again confirmed that the Tax Court had no jurisdiction over the collection procedures followed by CRA:[2]

[8] Next, the Judge found that the respondent had set off its obligation to pay the taxed costs against the appellants’ tax debts, and that the Tax Court had no jurisdiction to review such set off.

[9] We agree that the Tax Court had no jurisdiction to review the respondent’s set off. In the present cases, the jurisdiction of the Tax Court was limited to hearing and determining the appeals brought under the Act (subsection 12(1) of the Tax Court of Canada Act, R.S.C. 1985, c. T-2). This does not include the power to review collection procedures employed by the respondent. Jurisdiction with respect to collection procedures lies with the Federal Court.

[1] 2013 FCA 173.

[2] Id per Dawson JA.

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Bill Innes

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William (Bill) Innes has practiced in the areas of tax litigation, taxation and estates and trusts since 1975. His practice includes all aspects of dispute resolution in taxation matters under both federal and provincial legislation, but with a special emphasis on appeals under the Income Tax Act (Canada). In addition, Bill acts as counsel in matters of estate and trust law and serves as an advisor to large charitable and non-profit institutions on issues of trusts, estates and taxation. He frequently appears as counsel before the Tax Court of Canada, the Federal Court and the Federal Court of Appeal.

For advice on tax litigation matters contact Bill:

WILLIAM I. INNES

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416-869-2204
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Bill is listed and recognized in the 2020 edition of Best Lawyers in Canada; Lexpert/ROB Special Edition 2020 – Canada’s Leading Litigation Lawyers; 2020 Canadian Legal Lexpert Directory - Consistently Recommended - Litigation - Corporate Tax; and Canadian Who’s Who.

Bill is also AV Peer and Judicial Review Rated according to Martindale-Hubbell (Preeminent), its highest level of professional ranking.

Bill is a member of the Editorial Boards of the Canadian Tax Journal and Tax Litigation and a past member of the Editorial Boards of the CCH Canadian Tax Reporter and the CCH Annotated Income Tax Act.

Bill is the author or co-author of several legal texts and numerous articles, including:

Tax Evasion, William I. Innes. (Scarborough, Ont.: Carswell, 1995 - Looseleaf).

The essential GAAR manual: policies, principles and procedures. William I. Innes, Patrick J. Boyle, Joel A. Nitikman. (Toronto: CCH Canadian, 2006).
Charities, non-profits and philanthropy under the Income Tax Act, William I. Innes, Patrick J. Boyle. (Toronto: CCH Canadian: Fraser Milner Casgrain, 2006).
Federal tax practice, William Innes & Brendan Bissell, (Toronto: CCH Canadian, 2007).

Bill was a member of the International Academy of Estate and Trust Law from 1992 to 2012.

A&E Precision Fabricating and Machine Shop Inc. v. R. – FCA: Tax Court has no Jurisdiction over Collection Matters

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