Tax & Trade Blog

A couple of recent cases in the Federal Court of Appeal (“FCA”), which saw the taxpayer and importer, respectively, attempting to appeal earlier Court decisions, have emphasized that tax and trade litigation is a “one-shot deal”, where taxpayers (and importers on the trade side) are required to put their best foot forward in the lower Courts, and will be unlikely to get a second chance at making arguments before the FCA (or the lower Courts) if they do not do so.

Doostyar v. Canada

Doostyar v. Canada was a tax case, appealed to the FCA, in which the taxpayer’s position was that the Tax Court of Canada (“TCC”) erred by not accepting its additional submissions, post hearing.

After COVID, the CRA seems to be really ramping up its audit activities, both for GST/HST and income tax matters.  Once a Notice of Assessment is issued, reversing the CRA’s position becomes an uphill battle as the Objection and Appeal processes are technical and complex.

This blog focuses on the Objection and Appeal processes under the Excise Tax Act (the “ETA”), highlighting common pitfalls and the need for a strategic approach in tax disputes.