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

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.).

Free newsletter

Our daily newsletter is FREE and keeps you up to date on all the developments in the Ontario legal community. Please complete the form below and click on subscribe for daily newsletters from Law Times.

Recent articles & video

Ontario court rules cap on general damages does not apply to sexual abuse

House of Commons reveals legal fee reimbursement over $54k

Downey slams Purdue Pharma for not including Canadian claims

U of T's Anita Anand awarded medal by Royal Society of Canada

How criminal lawyers make referrals

Man discharged from his fourth bankruptcy

Most Read Articles

Chasm in opinions remains after statement of principles repeal

Insurance lawyers reveal their referral philosophies

Court of Appeal rules auto insurer not liable for parental negligence claim stemming from accident

Man discharged from his fourth bankruptcy