Broader Canada Tax Court Powers Sought After High Court Ruling

Tax lawyers in Canada are pushing the government to expand the jurisdiction of the country’s Tax Court after a pair of high court rulings confirmed that tax disputes, including transfer pricing challenges, must be adjudicated in two different tribunals.

Several practitioners said they would seek legislative changes to Canada’s two main tax laws—the Income Tax Act and the Excise Tax Act—after the Supreme Court of Canada decisions. Both acts are filled with provisions that require litigation over an audit to go through multiple venues at once, including the two federal-level courts at issue, raising costs for businesses and making tax ...