A SHORT HISTORY
The Tax Court of Canada was established in 1983 with the coming into force of the Tax Court of Canada Act. The Court, however, may be said to have its roots in the Income Tax Appeal Board, which was created in 1946.
The Income Tax Appeal Board was created in order to simplify the procedure in income tax appeals, which up to that point had been proceeding solely before the Exchequer Court, the predecessor to today's Federal Court.
| With the creation of the Income Tax Appeal Board (renamed Tax Appeal Board in 1958), taxpayers had the option of proceeding by way of simplified procedure before the Income Tax Appeal Board or by way of formal procedure before at the Exchequer Court. |  |
In 1966, the Royal Commission on Taxation, headed by Kenneth Carter, released its report. It recommended that the Tax Appeal Board be discontinued and that a new tax court be established with exclusive original jurisdiction in all tax cases. The Tax Review Board was created in 1970 in the aftermath of the Carter Commission. The informality of proceedings was continued under this new tribunal. At the same time, the newly established Federal Court – Trial Division was granted concurrent original jurisdiction over income tax appeals in a manner comparable to the earlier Exchequer Court.
The Tax Court of Canada Act came into force on July 18, 1983. By virtue of this Act, the Tax Review Board was continued as the Tax Court of Canada. This Act also granted the Court expanded jurisdiction. It could hear appeals pursuant to the Income Tax Act, the insurability provisions of the Unemployment Insurance Act (now the Employment Insurance Act), the provisions of the Canada Pension Plan relating to the pensionability of employment, and the Petroleum and Gas Revenue Tax Act.
Jurisdiction in the income tax area, however, continued to be shared concurrently with the Federal Court – Trial Division. It was only in 1991 that the Tax Court of Canada was granted exclusive original jurisdiction over income tax appeals.
Today, the Court's jurisdiction has expanded to now include appeals pursuant to the Old Age Security Act, the Excise Tax Act (Part IX), the Cultural Property Export and Import Act, the Customs Act (Part V.1), the War Veterans Allowance Act, the Civilian War-related Benefits Act, and the Veterans Review and Appeal Board Act.
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The changes over the years reflect the recommendations of the Carter Commission that all tax appeals should be heard by a single court. The Court, however, has also kept many of the features of its predecessors. The Court's informal procedure may be compared to the procedure before the Tax Review Board. The Court's general procedure is similar to the procedure that existed at the Federal Court – Trial Division and, before that, at the Exchequer Court. |
It is in fact this dual procedure that distinguishes the Court from other courts of justice.
Over the years, the number of judges of the Court has grown. There were 12 judges in 1983. Today the Tax Court of Canada Act foresees that the Court consists of the Chief Justice, the Associate Chief Justice, and 20 judges. These judges are assisted by supernumerary judges and deputy judges.
See History of the Tax Court of Canada.