Tax Court of Canada Comparing Tax Jurisdictions Worldwide

Tax Court of Canada Comparing Tax Jurisdictions Worldwide and Common Issues of International Fiscality Rome: September 29, 2017 Prepared By: CHIEF JUSTICE E. P. ROSSITER 1

A. Tax Court of Canada: Composition: Chief Justice Associate Chief Justice 20 Puisne Judges 4+ Supernumerary Judges (34 million people) Head Office/Resides: Ottawa, Ontario, Canada Itinerant Court: Sit in 57 cities – 44 weeks per year Rolling docket Operations Local: 11 cities – full court facilities 46 cities – borrowed facilities from local courts 2

Jurisdiction: • • • Income tax – 80% GST (VAT) – 15% EI, CPP & OAS – 5% And odds and ends All of Canada - Atlantic to Pacific 49 th Parallel to the North Pole Bijural and bilingual • Judges travel every second week • Exclusively- Trial court - Not an administrative court Appeals to: • Federal Court of Appeal – 88% upheld rate • Supreme Court of Canada 3

Process: • • • Taxpayer files returns with Canada Revenue Agency Assessment (Reassessment) Notice of Objection (taxpayer) Notice of Confirmation (MNR) Notice of Appeal to TCC Limitations on Authority – only • • • Reconsideration/recalculation Allow Dismiss Vacate; or Vary No criminal authority jurisdiction. 4

Two processes: • • Informal $25, 000. 00 or less General greater than $25, 000. 00 Lay litigants 35% Counsel represented 65% In addition to trials Judges also do: • Case Management; and • Settlement Conferences 5

B. International Association of Tax Judges Historical: Establishment Statutes Activities/Annual Assemblies: • Make-up • Purpose: opportunity/forum for interaction amongst tax judges on issues of mutual concern/development • Locations • Membership • Program and how developed • Projects: o Treaty summary cases by country 6

• • o Problems • time lines • languages • central registry • resources Newsletters Internal Inquiries between judges Information circulation IFA-BEPS What do we want to do? • Permanent Scientific committee • More frequent, more informative newsletter • Chat room on common legal issues 7

• Ability/capacity to communicate in multiple languages o English o French o Italian o Spanish o German o Other • Central registry for jurisprudence generally world-wide o Treaty cases o Transfer pricing cases o International tax issues • Outreach Program to help developing tax courts/tribunals in terms of rules, practices and procedures. • One stop shopping for judicial ideas on tax reform – international tax issues. 8

• Promote dispute resolution on international tax issues. • Provide a forum or base for exchange of information and ideas on tax issues generally to the area of concern to tax judges. • Bottom line: Provide an institution for the development and assistance to tax jurists world-wide. 9

C. Canada – Judicial Organizations Two judicial organizations: Canadian Judicial Council (CJC) • Make-up/membership • Mandate o Judicial Education o Conduct o Advocacy for Judiciary • Meetings Canadian Superior Court Judges Association • Make-up/membership • Mandate • Meetings 10

D. Tax Court of Canada Judiciary: Four entities: v Federal Judicial Affairs (FJA) v National Judicial Institute (NJI) v Canadian Judicial Council (CJC) v Courts Administration Service (CAS) Recruitment: • Judicial Advisory Committee: • Make-up • Mandate • Meeting frequency • Process • Result 11

• Appointments: o Who o When o How • Security of Independence: o Tenure o Financial o Administration • Transfers o No transfers due to specialization – all judges reside in Ottawa; all judges are itinerant. • Removal: v. CJC • make-up • mandate 12

o Complaint process: § How § When § Grounds § Potential result § How it works o Parliament of Canada • Training and Education: v. National Judicial Institute • What is it • Function • How it operates: § General CLE § Special CLEs re: tax 13

v Federal Judicial Affairs: • Financial: § Salaries § Benefits § Retirement § Travel expenses • Language Training • Conduct hearings • Appointment process 14

v Courts Administration Service: • • • Administrative services to four National Courts: Federal Court of Appeal Federal Court Tax Court of Canada Court Martial Appeal Court Provide/responsibility for: Technology Security Facilities Staffing 15

• • Human resources Publication of decisions Translation services Regional offices (10) 600 staff Funded and appointed by Government of Canada All policies/procedures of government apply Supposed to be buffer between government and National Court BUT reality is they work for government 16