Department of Justice

Proposed Reform of the Federal Court of Canada and the Tax Court of Canada

The structural reforms that were announced today are designed to improve the efficiency of the Federal Court of Canada and the Tax Court of Canada while improving their effectiveness and fully respecting their independence.

The reforms are in keeping with recommendations made by the Auditor General in his 1997 report that called for improved coordination in the administrative management of the Federal and Tax Courts. The Minister intends to introduce legislation later this year that would implement three important structural modifications to the two Courts:

1. A Courts Administration Service

The current administrative services of the two Courts would be consolidated into a single Courts Administration Service, headed by a senior order-in-council appointee, which would serve the administrative needs of the Federal Court of Canada and the Tax Court of Canada. This administrative model will lay the strong and cohesive administrative groundwork necessary to achieve the improved economies and efficiencies identified in the Auditor General's 1997 Report on the Federal Court of Canada and Tax Court of Canada. At the same time, it will reinforce the independence of the courts by placing administrative services at arms-length from the executive.

2. Creation of a Separate Federal Court of Appeal

The existing two divisions of the Federal Court will be divided to create a separate Court of Appeal and Trial Court. The current Chief Justice of the Federal Court will become the Chief Justice of the Court of Appeal; he will preside over the Court of Appeal, and will continue to have precedence as the Chief Justice of the Federal Court of Canada. The position of Associate Chief Justice of the Federal Court will be converted into that of Chief Justice who will preside over the Trial Court.

This structure is the norm for provincial superior courts, with the exception of some smaller provinces. This reform would clarify the respective roles of the Chief Justices of the Trial Court and the Court of Appeal and remove the ambiguities that were identified by the Supreme Court of Canada in the recent Tobiass case.

3. Superior Court Status for the Tax Court

To ensure that the Tax Court of Canada is an equal partner in the newly consolidated administration, its status would be increased to that of a superior court. Since the judges of the Tax Court already receive salaries and benefits equivalent to superior court judges, this step would not involve any additional cost. The current jurisdiction and remedial powers of the Tax Court would remain the same.

The Minister of Justice is confident that these reforms will receive widespread support from all those served by the Federal Court and the Tax Court. By creating a single administrative framework, the opportunities for administrative improvements and efficiencies identified in the Auditor General's Report can be effectively realized while maintaining the high quality of justice that Canadians expect of these courts.

Department of Justice Canada
June, 1998