Federal Appeal


Tax

Income tax

Administration and enforcement

It was not unjust to order taxpayer to pay security for costs

Security for costs. Taxpayer was resident outside of Canada and appealed assessment. Minister of National Revenue brought motion for order requiring taxpayer to pay security for costs. Tax Court judge granted motion and ordered taxpayer to pay $9,000 as security for costs without providing separate reasons. Taxpayer appealed. Appeal allowed. Order was set aside, Minister’s motion was granted, and taxpayer was ordered to pay $13,850 as security for costs. Reasons fell short of standard. Examining order in light of record, basis for order could not be discerned. Matter was considered de novo. Since taxpayer did not reside in Canada, it would be difficult for Minister to enforce any costs award it might receive. Evidence offered by taxpayer concerning his financial condition was too narrow and general to be given much weight, so Minister was entitled to order requiring taxpayer to provide security for costs. Minister’s estimates for discoveries and hearings were reasonable. It was not unjust to order taxpayer to pay $13,850 as security for costs in three installments, even though taxpayer ended up in worse position after his appeal.

Mathias v. R. (2017), 2017 CarswellNat 377, 2017 FCA 19, David Stratas J.A., Webb J.A., and Scott J.A. (F.C.A.).

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