• 17. (1) Subparagraph 164(1.1)(d)(ii) of the Act is replaced by the following:

  • (ii) 1/2 of the amount so assessed that is in controversy if

    • (A) the taxpayer is a large corporation (within the meaning assigned by subsection 225.1(8)), or

    • (B) the amount is in respect of a particular amount claimed under section 110.1 or 118.1 and the particular amount was claimed in respect of a tax shelter.

• (2) Subsection (1) applies in respect of amounts assessed for taxation years that end after 2012.

• 18. (1) Section 171 of the Act is amended by adding the following after subsection (1.1):

  • Marginal note:Partial disposition of appeal

    (2) If an appeal raises more than one issue, the Tax Court of Canada may, with the consent in writing of the parties to the appeal, dispose of a particular issue by

    • (a) dismissing the appeal with respect to the particular issue; or

    • (b) allowing the appeal with respect to the particular issue and

      • (i) varying the assessment, or

      • (ii) referring the assessment back to the Minister for reconsideration and reassessment.

  • Marginal note:Disposal of remaining issues

    (3) If a particular issue has been disposed of under subsection (2), the appeal with respect to the remaining issues may continue.

  • Marginal note:Appeal to Federal Court of Appeal

    (4) If the Tax Court of Canada has disposed of a particular issue under subsection (2), the parties to the appeal may, in accordance with the provisions of the Tax Court of Canada Act or the Federal Courts Act, as they relate to appeals from decisions of the Tax Court of Canada, appeal the disposition to the Federal Court of Appeal as if it were a final judgment of the Tax Court of Canada.

• (2) Subsection (1) applies with respect to issues disposed of by the Tax Court of Canada after the day on which this Act receives royal assent.

• 19. (1) Subsections 174(1) to (4.1) of the Act are replaced by the following:

  Marginal note:Common questions

  • 174. (1) The Minister may apply to the Tax Court of Canada for a determination of a question if the Minister is of the opinion that the question is common to assessments or proposed assessments in respect of two or more taxpayers and is a question of law, fact or mixed law and fact arising out of

    • (a) one and the same transaction or occurrence or series of transactions or occurrences; or

    • (b) substantially similar transactions or occurrences or series of transactions or occurrences.

  • Marginal note:Application to Court

    (2) An application under subsection (1)

    • (a) shall set out

      • (i) the question in respect of which the Minister requests a determination,

      • (ii) the names of the taxpayers that the Minister seeks to have bound by the determination of the question, and

      • (iii) the facts and reasons on which the Minister relies and on which the Minister based or intends to base assessments of tax payable by each of the taxpayers named in the application; and

    • (b) shall be served by the Minister on each of the taxpayers named in the application and on any other persons who, in the opinion of the Tax Court of Canada, are likely to be affected by the determination of the question,

      • (i) by sending a copy to each taxpayer so named and each other person so likely to be affected, or

      • (ii) on ex parte application by the Minister, in accordance with the directions of the Court.

  • Marginal note:Determination of question by Tax Court

    (3) If the Tax Court of Canada is satisfied that a question set out in an application under this section is common to assessments or proposed assessments in respect of two or more taxpayers who have been served with a copy of the application, the Tax Court of Canada may

    • (a) make an order naming the taxpayers in respect of whom the question will be determined;

    • (b) if one or more of the taxpayers so served has or have appealed an assessment to the Tax Court of Canada in respect of which the question is relevant, make an order joining a party or parties to that or those appeals as it considers appropriate; and

    • (c) proceed to determine the question in such manner as it considers appropriate.

  • Marginal note:Determination final and conclusive

    (4) Subject to subsection (4.1), if a question set out in an application under this section is determined by the Tax Court of Canada, the determination is final and conclusive for the purposes of any assessments of tax payable by the taxpayers named in the order made under paragraph (3)(a).

  • Marginal note:Appeal

    (4.1) If a question set out in an application under this section is determined by the Tax Court of Canada, an appeal from the determination may, in accordance with the provisions of the Tax Court of Canada Act or the Federal Courts Act, as they relate to appeals from decisions of the Tax Court of Canada to the Federal Court of Appeal, be made by

    • (a) the Minister; or

    • (b) any taxpayer named in an order of the Court made under paragraph (3)(a) if

      • (i) the question arises out of one and the same transaction or occurrence or series of transactions or occurrences,

      • (ii) the taxpayer has appealed an assessment to the Tax Court of Canada in respect of which the question is relevant, or

      • (iii) the taxpayer has been granted leave by a judge of the Federal Court of Appeal.

  • Marginal note:Binding to appeal

    (4.2) Any taxpayer named in an order made under paragraph (3)(a) in respect of a question is bound by any determination in respect of the question under an appeal made to the Federal Court of Appeal or the Supreme Court of Canada.

• (2) Subsection (1) applies in respect of applications made after the day on which this Act receives royal assent.

• 20. (1) The portion of subsection 225.1(7) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:One-half collection

    (7) If an amount has been assessed under this Act in respect of a corporation for a taxation year in which it was a large corporation, or in respect of a particular amount claimed under section 110.1 or 118.1 where the particular amount was claimed in respect of a tax shelter, then subsections (1) to (4) do not limit any action of the Minister to collect

• (2) Subsection (1) applies in respect of amounts assessed for taxation years that end after 2012.

• 21. (1) The portion of subsection 231.2(3) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Judicial authorization

    (3) A judge of the Federal Court may, on application by the Minister and subject to any conditions that the judge considers appropriate, authorize the Minister to impose on a third party a requirement under subsection (1) relating to an unnamed person or more than one unnamed person (in this section referred to as the “group”) if the judge is satisfied by information on oath that

• (2) Subsections 231.2(4) to (6) of the Act are repealed.

• (3) Subsections (1) and (2) apply to applications made by the Minister of National Revenue after the day on which this Act receives royal assent.

R.S., c. T-2Tax Court of Canada Act

Marginal note:2002, c. 22, s. 408(6)

• 22. (1) Subparagraph 2.2(2)(c)(ii) of the Tax Court of Canada Act is replaced by the following:

  • (ii) any penalty under that Part that is in issue in the appeal, and

• (2) Subsection (1) applies with respect to appeals for which a notice of appeal is filed with the Tax Court of Canada after the day on which this Act receives royal assent.

Marginal note:R.S., c. 51 (4th Supp.), s. 5; 1993, c. 27, s. 216(1)

• 23. (1) Section 17.3 of the Act is replaced by the following:

  Marginal note:Examinations for discovery — Income Tax Act

  • 17.3 (1) If the aggregate of all amounts in issue in an appeal under the Income Tax Act is $50,000 or less, or if the amount of the loss that is determined under subsection 152(1.1) of that Act and that is in issue is $100,000 or less, an oral examination for discovery is not to be held unless the parties consent to it or unless one of the parties applies for it and the Court is of the opinion that the case could not properly be conducted without that examination for discovery.

  • Marginal note:Examinations for discovery — Excise Tax Act

    (2) If the amount in dispute in an appeal under Part IX of the Excise Tax Act is $50,000 or less, an oral examination for discovery is not to be held unless the parties consent to it or unless one of the parties applies for it and the Court is of the opinion that the case could not properly be conducted without that examination for discovery.

  • Marginal note:Consideration on application

    (3) In considering an application under subsection (1) or (2), the Court may consider the extent to which the appeal is likely to affect any other appeal of the party who instituted the appeal or relates to an issue that is common to a group or class of persons.

  • Marginal note:Mandatory examination

    (4) The Court shall order an oral examination for discovery in an appeal referred to in subsection (1) or (2), on the request of one of the parties, if the party making the request agrees to submit to an oral examination for discovery by the other party and to pay the costs in respect of that examination for discovery of that other party in accordance with the tariff of costs set out in the rules of Court.

• (2) Subsection (1) applies with respect to appeals for which a notice of appeal is filed with the Tax Court of Canada after the day on which this Act receives royal assent.

Marginal note:R.S., c. 51 (4th Supp.) s. 5; SOR/93-295, ss. 3 and 4

• 24. (1) Paragraphs 18(1)(a) and (b) of the Act are replaced by the following:

  • (a) the aggregate of all amounts in issue is equal to or less than $25,000; or

  • (b) the amount of the loss that is determined under subsection 152(1.1) of that Act and that is in issue is equal to or less than $50,000.

• (2) Subsection (1) applies with respect to appeals for which a notice of appeal is filed with the Tax Court of Canada after the day on which this Act receives royal assent.

Marginal note:R.S., c. 51 (4th Supp.) s. 5; SOR/93-295, ss. 3 and 4

• 25. (1) Section 18.1 of the Act is replaced by the following:

  Marginal note:Limit

  18.1 Every judgment that allows an appeal referred to in subsection 18(1) is deemed to include a statement that the aggregate of all amounts in issue not be reduced by more than $25,000 or that the amount of the loss in issue not be increased by more than $50,000, as the case may be.

• (2) Subsection (1) applies with respect to appeals for which a notice of appeal is filed with the Tax Court of Canada after the day on which this Act receives royal assent.

Marginal note:R.S., c. 51 (4th Supp.) s. 5; SOR/93-295, s. 3

• 26. (1) The portion of paragraph 18.11(2)(b) of the Act after subparagraph (iii) is replaced by the following:

  exceeds $25,000.

• Marginal note:R.S., c. 51 (4th Supp.) s. 5; SOR/93-295, s. 3

  (2) Subsection 18.11(3) of the Act is replaced by the following:

  • Marginal note:General procedure applies — interest exceeding $25,000

    (3) The Court shall grant an application under subsection (1) if the amount of interest that is in issue in an appeal exceeds $25,000.

• (3) Subsections (1) and (2) apply with respect to appeals for which a notice of appeal is filed with the Tax Court of Canada after the day on which this Act receives royal assent.

Marginal note:R.S., c. 51 (4th Supp.) s. 5; SOR/93-295, ss. 3 and 4

• 27. (1) Sections 18.12 and 18.13 of the Act are replaced by the following:

  Marginal note:Order for general procedure

  • 18.12 (1) The Court shall order that sections 17.1 to 17.8 apply in respect of an appeal referred to in subsection 18(1) if, before the start of the hearing of the appeal, it appears to the Court that

    • (a) the aggregate of all amounts in issue exceeds $25,000; or

    • (b) the amount of the loss in issue exceeds $50,000.

  • Marginal note:Limitation

    (2) Subsection (1) does not apply if the appellant elects to limit the aggregate of all amounts in issue to $25,000 or the amount of the loss in issue to $50,000, as the case may be.

  Marginal note:Order at hearing

  • 18.13 (1) The Court shall, on motion of either party or of its own motion, order that sections 17.1 to 17.8 apply with respect to an appeal referred to in subsection 18(1) if, after the hearing of the appeal has started but before a judgment is rendered on the appeal, it appears to the Court that

    • (a) the aggregate of all amounts in issue exceeds $25,000; or

    • (b) the amount of loss in issue exceeds $50,000.

  • Marginal note:Limitation

    (2) Subsection (1) does not apply if

    • (a) the appellant elects to limit the aggregate of all amounts in issue to $25,000 or the amount of the loss in issue to $50,000, as the case may be; or

    • (b) the amount of the excess is too small to justify a re-hearing in accordance with the general procedure, taking into account the inconvenience and expense that would result to the parties and the interests of justice and fairness.

• (2) Subsection (1) applies with respect to appeals for which a notice of appeal is filed with the Tax Court of Canada after the day on which this Act receives royal assent.

Marginal note:2006, c. 11, s. 31

28. Section 18.27 of the Act is replaced by the following:

Marginal note:2002, c. 22, s. 408(11)

• 29. (1) Section 18.3001 of the Act is replaced by the following:

  Marginal note:Application — Excise Act, 2001, Customs Act, and Excise Tax Act

  18.3001 Subject to section 18.3002, this section and sections 18.3003, 18.3005 and 18.3008 to 18.302 apply, with any modifications that the circumstances require, to an appeal under

  • (a) the Excise Act, 2001 if

    • (i) a person has so elected in the notice of appeal for an appeal under that Act or at such later time as may be provided in the rules of Court, and

    • (ii) the amount in dispute does not exceed $25,000;

  • (b) Part V.1 of the Customs Act if a person has so elected in the notice of appeal for an appeal under that Act or at such later time as may be provided in the rules of Court; and

  • (c) Part IX of the Excise Tax Act if

    • (i) a person has so elected in the notice of appeal for an appeal under that Act or at such later time as may be provided in the rules of Court, and

    • (ii) the amount in dispute does not exceed $50,000.

  Marginal note:Limit — Excise Act, 2001

  18.30011 Every judgment that allows an appeal referred to in paragraph 18.3001(a) is deemed to include a statement that the amount in dispute not be reduced by more than $25,000.

  Marginal note:Limit — Excise Tax Act

  18.30012 Every judgment that allows an appeal referred to in paragraph 18.3001(c) is deemed to include a statement that the amount in dispute not be reduced by more than $50,000.

• (2) Subsection (1) applies with respect to appeals for which a notice of appeal is filed with the Tax Court of Canada after the day on which this Act receives royal assent.