Bill C-60: Changes to the Discovery Process

Last week in the second part of our Bill C-60 series, we examined the changes to the tax court rules. This week we discuss changes to the discovery process.

Bill C-60 proposes to implement certain provisions of the March 21, 2013 federal budget; among these, proposed legislative amendments that pertain to the audit process in the Income Tax Act and provisions in the Tax Court of Canada Rules. Discussed below in the third of a four-part series are changes to the discovery process.

Part 3 - Changes to the Discovery Process

Another change to the rules of the Tax Court proposed by Bill C-60 pertains to the process for conducting oral examinations for discovery. As mentioned above, the discovery process is available under the General Procedure, but not in all situations. Examinations for discovery allow parties to question witnesses under oath on aspects of their pleadings and can make or break a case.

Currently, the Tax Court Act only allows such discoveries to be held when appeals have in issue $25,000 or less, or where the amount of loss is $50,000 or less. Bill C-60 proposes to raise the limit to $50,000 and $100,000 respectively. For GST/HST appeals though, a restriction on oral examinations for discovery is proposed: the right to an oral examination for discovery where the amount in dispute is $50,000 or less will apply to GST/HST appeals.

NEXT TIME: Expert Witnesses

LAST TIME: Changes to the Tax Court Rules