Tax Court Associate Judges Given Full Powers

Summary#

These are final rules numbered SOR/2023-151 that give the new office of associate judge clear powers in the Tax Court of Canada. The rules came into force on July 5, 2023 and let associate judges act like full judges for the types of Tax Court proceedings covered by the court’s rules.

What it does#

• Adds a new “Associate Judges” rule to the Tax Court’s sets of rules.
• Gives an associate judge “all the powers of a judge” under those rules.
• Says an associate judge may sit and act “at any time and at any place in Canada” and, when they do, they constitute the Court (they speak and decide for the Court).
• Applies the same change to the Tax Court rules that cover:
  • general procedure and informal procedure;
  • proceedings under the Canada Pension Plan and the Employment Insurance Act;
  • proceedings under the Excise Tax Act, the Customs Act, and the Excise Act, 2001 (those with informal procedure rules).

Who's affected#

• People and businesses involved in disputes before the Tax Court of Canada, including taxpayers and representatives.
• Lawyers, tax professionals, and others who bring or defend tax, customs, excise, CPP and EI cases in the Court.
• Court staff and judges, since the new rules change who can hear and decide cases.
• The rule text says this is not expected to create extra costs and that small businesses are not affected.

Why it matters#

• It makes the new role of associate judge operational by giving associate judges the clear authority to hear and decide cases.
• That should increase the Court’s ability to schedule and resolve cases, since more judicial officers can preside over matters and can sit anywhere in Canada.
• This is an administrative change to implement the new judicial office created earlier by the Budget Implementation Act, 2022, No. 1; it does not change substantive tax laws.