Dockets: A-81-19 (lead), A-82-19, A-412-19,
A-80-19, A-83-19 A-411-19
Citation: 2020 FCA 27
| CORAM:
|
NADON J.A.
WEBB J.A.
BOIVIN J.A.
|
Heard at Ottawa, Ontario, on January 27, 2020.
Judgment delivered from the Bench at Ottawa, Ontario, on January 27, 2020.
| REASONS FOR JUDGMENT OF THE COURT BY:
|
NADON J.A.
|
Dockets: A-81-19 (lead), A-82-19, A-412-19,
A-80-19, A-83-19, A-411-19
Citation: 2020 FCA 27
| CORAM:
|
NADON J.A.
WEBB J.A.
BOIVIN J.A.
|
REASONS FOR JUDGMENT OF THE COURT
(Delivered from the Bench at Ottawa, Ontario, on January 27, 2020).
NADON J.A.
[1]
We are all agreed that the Tax Court of Canada’s judge (the Judge) erred in concluding that subsection 171(2) of the Income Tax Act, R.S.C. 1985, c. 1 (5th Suppl.) (the Act), “cannot be applied to the appeal of Mr. Patel and Benninger…”
(Transcript of oral reasons, February 15, 2019 in files (2016-4750 (IT) G, 2016-4571 (IT) G, AB, Tab 6, p. 27).
[2]
In our view, the provision clearly allowed the judge, if he was so inclined in the exercise of his discretion, to give effect to the parties’ request to bifurcate the issues, as per their letter to the Tax Court of November 19, 2018.
[3]
We also wish to say that considering that subsection 171(2) of the Act is applicable and thus not a bar to the parties’ request, the fact that the parties are in agreement with respect to the manner in which their tax appeals should proceed, is a highly relevant, although not determinative, consideration in the exercise of the discretion to allow or not the parties’ request.
[4]
The appeals will therefore be allowed, the Tax Court of Canada’s decision of February 18, 2019, as amended by his Order of October 24, 2019, will be set aside and the matter will be returned to the Judge for reconsideration of the parties’ request in the light of these reasons;
[5]
Copy of these reasons will be filed also in appeals A-82-19, A-412-19, A-80-19, A-83-19 and A-412-19 as reasons therein.
"M. Nadon"
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