Tedesco – Federal Court of Appeal finds that individual partners could continue their own appeals following discontinuance of the partnership’s similar appeal

CRA issued Notices of Determination to deny losses of a limited partnership (TSI). Both TSI and its partners launched appeals to the Tax Court. However, TSI then filed a Notice of Discontinuance, which resulted in its appeal being deemed by s. 16.2(2) of the Tax Court of Canada Act to have been dismissed. The individual partners continued with their appeals, arguing that the Notices of Determination had been statute-barred.

Webb JA reversed the finding below that it was an abuse of process for the partners to continue their individual appeals. It was an arid technical point to focus on the TSI appeal having been deemed by s. 16.2 to have been dismissed. In reality, the question at issue (of the interpretation of s. 152(1.4)) had not yet been passed on by a court, so that hearing the individuals' appeals could not be characterized as abusive relitigation of that issue.

Neal Armstrong. Summary of Tedesco v. Canada, 2019 FCA 235 under General Concepts - Abuse of Process.