http://decision.tcc-cci.gc.ca/tcc-cci/decisions/en/item/110631/index.do 
Sun Life Assurance Company of Canada v. The Queen (July 3, 2015 – 2015 TCC 171, Owen J.).
Précis: The taxpayer had made a settlement offer in this decision which was more favourable to the Crown than the ultimate award made by the Court. The taxpayer asked for a lump sum costs award of $200,000 including hourly rates, disbursements and taxes. The Court awarded costs of $91,782, plus disbursements and appropriate HST
Decision: The taxpayer claimed legal fees based on the following:
[3] The claim for substantial indemnity costs is based on fees for professional services of $196,787.75 calculated as follows:
Justin Kutyan, partner: 108.2 hours at $1,130 per hour = $122,266
Vern Vipul, associate: 56.6 hours at $955 per hour = $54,053
Thang Trieu, associate: 18.75 hours at $785 per hour = $14,718.75
Wajiha Khan, law clerk: 23 hours at $250 per hour = $5,750
The taxpayer did not divide the hours into before and after the date of the settlement offer (April 24, 2013) but stated that “substantially all” of the time was incurred after that date. The Court reduced the hours by 10% to reflect that “substantially all”. It then reduced the hourly rates. No doubt this in part turned on the experience of the taxpayer’s counsel; the lead counsel was called to the bar in 2007, so an hourly rate of $1,130 seems high.
[33] I have already commented on the lack of precision in attributing time to the periods before and after the settlement offer. In light of this, I will assume that “substantially all” means 90%, which is a common benchmark in the tax area that has been adopted by the Canada Revenue Agency in interpreting the phrase. Hence, 90% of the time should be compensated at the above rates in determining solicitor and client costs. This yields the following amounts (rounded to the nearest dollar):
Justin Kutyan, partner: 108.2 hours times .9 times $800 per hour = $77,904
Vern Vipul, associate: 56.6 hours times .9 times $550 per hour = $28,017
Thang Trieu, associate: 18.75 hours times .9 times $400 per hour = $6,750
Wajiha Khan, law clerk: 23 hours times .9 times $100 per hour = $2,070
[34] The total of these amounts is $114,741. The substantial indemnity costs are 80% of the solicitor and client costs, which is $91,792. I set the party and party costs at $1,050 taking into account the amount allowed for a Class C action involving two counsel under paragraph 1(a) of Tariff B. The total is therefore $92,842.
The taxpayer was also allowed costs and appropriate HST:
[35] In addition, the Applicant claimed disbursements of $21,356.28 (including HST, where applicable) and HST of 13% on the professional fees. The Respondent did not challenge the disbursements, which I will allow in full net of any of the HST applicable to the disbursements that is recovered by the Applicant through input tax credits. The Applicant will also be allowed costs equal to the 13% HST applicable to professional fees of $92,842, but again only to the extent that the HST on such professional fees is not recovered by the Applicant through input tax credits.
[36] The recovery of input tax credits in respect of the professional fees is to be determined by reference to an appropriate proportion of the actual HST paid by the Applicant on the professional fees of KPMG Law LLP charged for this appeal.
[37] If the parties cannot agree on the amount of tax that should be paid by the Respondent to the Applicant as costs then the parties may apply to the Court to have that matter determined.