Section 178

Subsection 178(1)


Rath v. The Queen, 82 DTC 6175, [1982] CTC 207 (FCA)

S.178(1) does not give the Court the power to order the payment of interest by a taxpayer which is not exacted by any specific provision (such as s. 161(1)) of the Act.

Subsection 178(2)


The Queen v. Dresden Farm Equipment Ltd., 89 DTC 5019 (FCA)

S.178(2) also applies to appeals to the Court of Appeal.

Leclerc v. The Queen, 84 DTC 6147, 82 DTC 6339, [1982] CTC 338 (FCA)

"[N]either the fact that the amount at issue in the appeal was small nor the fact that the appeal raised no question of principle seems to me to have any bearing in deciding on the amount of the reasonable costs to which the taxpayer is entitled." The trial judge therefore committed an error of law when, after finding that counsels' hourly rates and the time spent by them on the appeals were not excessive, he nonetheless reduced the taxed costs by half because the appeals raised no question of principle and the costs exceeded the amount at issue.

The Queen v. Jessiman Brothers Cartage Ltd., 78 DTC 6205, [1978] CTC 274 (FCTD)

There is no need for the taxpayer to plead s. 178(2) in order for it to apply.

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Tax Topics - Income Tax Act - Section 68 80

The Queen v. Lavigueur, 73 DTC 5538, [1973] CTC 773 (FCTD)

The determination of reasonable and proper costs of a taxpayer should be limited to these which would be reasonable in an action involving tax of under $2,500.