PRACTICE |
Costs |
Canada v. Dalton
A-512-03
2004 FCA 173, Evans J.A.
29/4/04
4 pp.
Appeal by Crown from decision of Tax Court of Canada in which Judge declined to award Crown costs against respondent in appeal by ex-wife against reassessement of income tax liability for years 1998, 1999, 2000--As successful party in appeal, ex-wife awarded costs against Crown, which Judge fixed at $2,700--However, Judge refused in his discretion to order respondent to pay costs to Crown, because he "did not initiate any proceeding in this Court"--In so holding, Judge erred in law in exercise of discretion over costs conferred by Tax Court of Canada Rules (General Procedure), s. 147--Judge erred by regarding as relevant fact proceeding not initiated by respondent--While true respondent brought into appeal initiated by ex-wife, she had only been reassessed because respondent denied having signed election form--But for these denials, there would have been no appeal by ex-wife because Minister would not have taken view she should have included support payments in income-- In order to resolve factual issue, respondent necessarily made party to ex-wife's appeal--Judge should have ordered Crown to pay costs of ex-wife and ordered respondent both to reimburse Crown for portion of costs it had paid to ex-wife attributable to s. 174 application and to pay Crown's own costs in s. 174 application--Appeal allowed--Tax Court of Canada Rules (General Procedure), SOR/90-688, s. 147 (as am. by SOR/99-209, s. 7)--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 174.