October 07, 2011

Her Majesty the Queen (Appellant) v. Global Communications Limited (Respondent)

99 DTC 5377
Federal Court of Appeal
June 18, 1999

(Court File No. A-526-97.)

Appeals — Costs — Tax Court of Canada allowing corporate taxpayer’s appeal in part, but refusing to award costs against the taxpayer, since success divided — Whether Tax Court judge having made any error in the exercise of his discretion — Income Tax Act, R.S.C. 1985 (5th Supp.), c 1, as amended, s. 169.

The corporate taxpayer’s appeal (affecting its 1991 and 1992 taxation years) was allowed in part by the Tax Court of Canada (97 DTC 1293). However, costs against the taxpayer were not awarded, since success was divided. The Crown appealed to the Federal Court of Appeal, alleging, inter alia, that the Tax Court judge had erred by failing to give sufficient weight to the written settlement offer made by the Crown.

Held: The Crown’s appeal was dismissed. The Tax Court judge made no error in the exercise of his discretion.