Citation: 2012 TCC
219
Date: 20120619
Dockets: 2011-2800(IT)I
2011-2801(IT)I
BETWEEN:
GORDON McINTOSH,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
AND
BETWEEN:
SUSAN McINTOSH,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
REASONS FOR TAXATION
[1] This taxation came on for
hearing on April 26, 2012, by way of telephone conference call, following Judgments
dated December 29, 2011, wherein appeals of assessments under the Income Tax were
allowed with costs, if any. Mr. McIntosh represented himself and Susan McIntosh.
The Respondent was represented by Ms. Paige Atkinson.
Page 2
[2] Each Appellant filed
a Bill of Costs which included a claim of $819.00 for accounting fees. Mr.
McIntosh’s Bill of Costs also included a claim for parking in the amount of
$15.00, which amount is not in dispute. In addition, the Appellants submitted a
letter dated April 16, 2012, setting out their position regarding the Bills of
Costs.
[3] Mr. McIntosh submitted
that, after the appeals to the Tax Court of Canada were filed, an accountant
was consulted to review the notices of re-assessment. Mr. McIntosh further
stated that meetings were held with the accountant on a number of occasions and
the accountant had discussions with counsel for the Respondent.
[4] Mr. McIntosh
further submitted that the re-assessments under appeal impacted each Appellant
differently and that the accountant did work that was unique to each of them.
He further stated that separate invoices were issued for the work done for each
Appellant.
[5] In summary, Mr.
McIntosh submitted that costs were awarded to two separate Appellants and that
they were each entitled to full reimbursement for accounting fees.
[6] In response to
Mr. McIntosh’s submissions, Mr. Atkinson stated that when appeals are heard at
the same time on common evidence, only one award of costs for the two appeals is
allowable.
[7] Ms. Atkinson
further submitted that it was well established law that the Appellants were
only entitled to recover $250.00 on account of preparation for hearing by their
accountant, plus $15.00 for parking.
DECISION:
[8] In addition to
the oral submissions of the parties, I have also considered the letter from the
Appellants dated April 16, 2012. That letter stated that the amount claimed for
accounting fees fell under subsection 11.2(1) of the Tax Court of Canada Rules,
which states:
Page 3
“Such other
disbursements may be allowed as were essential for the conduct of the appeal if
it is established that the disbursements were made or that the party is liable
for them.”
The issue to be decided
is whether the Appellants are entitled to recover the amounts paid to their
account as a disbursement under this subsection.
[9] The invoice
attached to each Bill of Costs was from Anthony Cheng Professional Corporation,
Chartered Account and contained the identical description of work performed, as
follows:
To telephone
conversations and discussions with management of the company with respect to
the appeal to tax court for personal income tax returns audit for the period
from January 1, 2007 to December 31, 2008.
To telephone
conversations and discussions with Paige Atkinson, Counsel for Justice Canada with
respect to the audit and the tax court appeal and provide documents
accordingly.
To sundry services rendered in conjunction with the above.
MY FEE: $780.00
G.S.T.: $ 39.00
BALANCE DUE: $819.00
[10] The description
of the work covered by the two invoices represents work done by the Appellants’
accountant in preparation for hearing. As a result, the amounts to be allowed
are determined by Section 11.1, as follows:
"Unless
otherwise directed by the Court, where an appellant is represented or assisted
by an advisor other than counsel, disbursements in respect of services referred
to in section 11 may be allowed on the taxation of party and party costs in an
amount not to exceed one half of the amounts listed in section 11."
Page 4
[11] The maximum
amount that may be allowed for the services of counsel for preparation for
hearing in Section 11 is $250.00. As the Appellants were not represented by
counsel, they are only entitled to each recover $125.00 (plus $6.25 for HST) on
account of the work done by their accountant in preparing for hearing.
[12] I appreciate
that the amounts I have allowed are considerably less than what the Appellants
were seeking to recover, but I am bound by the Rules of the Court. Fees paid to
an accountant for preparation for hearing cannot be re-characterized as a
disbursement and allowed under Section 11.2(1).
[13] The Bills of
Costs of the Appellants are taxed and the following amounts are allowed:
Gordon
McIntosh - $146.25 (Includes $15.00 for parking)
Susan
McIntosh - $131.25
Signed at Toronto, Canada, this 20th day
of June, 2012.
"B. G. Tanasychuk"
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