Federal Court

Civil Practice and Procedure


Costs of particular proceedings

Taxpayer awarded costs after Minister of National Revenue withdrew request for information

Taxpayer did not comply with requirement issued by Minister of National Revenue under s. 231.2 of Income Tax Act requesting information relating to taxpayer’s offshore bank accounts. Minister brought application for compliance order. Minister informed taxpayer that requested information was no longer required because it was obtained through other means, withdrew requirement, and discontinued compliance application. Taxpayer withdrew judicial review application of decision to issue requirement. Taxpayer and Minister each brought motion for costs of withdrawn applications. Taxpayer’s motion granted, Minister’s motion dismissed. Taxpayer was awarded costs of $21,000 all-inclusive. Party against whom proceeding had been discontinued was entitled to costs. Withdrawal did not constitute admission of wrongdoing on part of Minister. Taxpayer’s refusal to provide requested information necessitated compliance application. Judicial review application was duplicative. Solicitor-client costs or costs in excess of Column III of Tariff B were not warranted. There was no evidence of reprehensible, scandalous or outrageous conduct on part of Minister. Minister’s decision not to disclose information sought by taxpayer was not unreasonable. Requirement and compliance application were not improper, vexatious or unnecessary. Taxpayer was entitled to partial costs on lump-sum basis.

Canada (National Revenue) v. Prince (2017), 2017 CarswellNat 6672, Simon Noël J. (F.C.).

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