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s. 174

PART I — Income Tax · DIVISION J — Appeals to the Tax Court of Canada and the Federal Court of Appeal

Common questions

Not yet annotated · Text current to 2026-06-21 · section last amended 2013-06-26

Current text

(1)

The Minister may apply to the Tax Court of Canada for a determination of a question if the Minister is of the opinion that the question is common to assessments or proposed assessments in respect of two or more taxpayers and is a question of law, fact or mixed law and fact arising out of

(a)

one and the same transaction or occurrence or series of transactions or occurrences; or

(b)

substantially similar transactions or occurrences or series of transactions or occurrences.

Application to Court

(2)

An application under subsection (1)

(a)

shall set out

(i)

the question in respect of which the Minister requests a determination,

(ii)

the names of the taxpayers that the Minister seeks to have bound by the determination of the question, and

(iii)

the facts and reasons on which the Minister relies and on which the Minister based or intends to base assessments of tax payable by each of the taxpayers named in the application; and

(b)

shall be served by the Minister on each of the taxpayers named in the application and on any other persons who, in the opinion of the Tax Court of Canada, are likely to be affected by the determination of the question,

(i)

by sending a copy to each taxpayer so named and each other person so likely to be affected, or

(ii)

on ex parte application by the Minister, in accordance with the directions of the Court.

Determination of question by Tax Court

(3)

If the Tax Court of Canada is satisfied that a question set out in an application under this section is common to assessments or proposed assessments in respect of two or more taxpayers who have been served with a copy of the application, the Tax Court of Canada may

(a)

make an order naming the taxpayers in respect of whom the question will be determined;

(b)

if one or more of the taxpayers so served has or have appealed an assessment to the Tax Court of Canada in respect of which the question is relevant, make an order joining a party or parties to that or those appeals as it considers appropriate; and

(c)

proceed to determine the question in such manner as it considers appropriate.

Determination final and conclusive

(4)

Subject to subsection (4.1), if a question set out in an application under this section is determined by the Tax Court of Canada, the determination is final and conclusive for the purposes of any assessments of tax payable by the taxpayers named in the order made under paragraph (3)(a).

Appeal

(4.1)

If a question set out in an application under this section is determined by the Tax Court of Canada, an appeal from the determination may, in accordance with the provisions of the Tax Court of Canada Act or the Federal Courts Act, as they relate to appeals from decisions of the Tax Court of Canada to the Federal Court of Appeal, be made by

(a)

the Minister; or

(b)

any taxpayer named in an order of the Court made under paragraph (3)(a) if

(i)

the question arises out of one and the same transaction or occurrence or series of transactions or occurrences,

(ii)

the taxpayer has appealed an assessment to the Tax Court of Canada in respect of which the question is relevant, or

(iii)

the taxpayer has been granted leave by a judge of the Federal Court of Appeal.

Binding to appeal

(4.2)

Any taxpayer named in an order made under paragraph (3)(a) in respect of a question is bound by any determination in respect of the question under an appeal made to the Federal Court of Appeal or the Supreme Court of Canada.

Time during consideration of question not counted

(5)

The time between the day on which an application under this section is served on a taxpayer pursuant to subsection 174(2) and

(a)

in the case of a taxpayer named in an order of the Tax Court of Canada pursuant to subsection 174(3), the day on which the determination becomes final and conclusive and not subject to any appeal, or

(b)

in the case of any other taxpayer, the day on which the taxpayer is served with notice that the taxpayer has not been named in an order of the Tax Court of Canada pursuant to subsection 174(3),

shall not be counted in the computation of

(c)

the periods determined under subsection 152(4),

(d)

the time for service of a notice of objection to an assessment under section 165, or

(e)

the time within which an appeal may be instituted under section 169,

for the purpose of making an assessment of the tax, interest or penalties payable by the taxpayer, serving a notice of objection thereto or instituting an appeal therefrom, as the case may be.

Source: Justice Laws Website. Not an official version.

Historic text

Immediately preceding version, in force from 2004-08-31 to 2013-06-25:

Show the text in force 2004-08-31 to 2013-06-25


Reference of common questions to Tax Court of Canada

  • 174 (1) Where the Minister is of the opinion that a question of law, fact or mixed law and fact arising out of one and the same transaction or occurrence or series of transactions or occurrences is common to assessments or proposed assessments in respect of two or more taxpayers, the Minister may apply to the Tax Court of Canada for a determination of the question.

  • Application to Court

    (2) An application under subsection 174(1) shall set out

    • (a) the question in respect of which the Minister requests a determination,

    • (b) the names of the taxpayers that the Minister seeks to have bound by the determination of the question, and

    • (c) the facts and reasons on which the Minister relies and on which the Minister based or intends to base assessments of tax payable by each of the taxpayers named in the application,

    and a copy of the application shall be served by the Minister on each of the taxpayers named in the application and on any other persons who, in the opinion of the Tax Court of Canada, are likely to be affected by the determination of the question.

  • Where Tax Court of Canada may determine question

    (3) Where the Tax Court of Canada is satisfied that a determination of the question set out in an application under this section will affect assessments or proposed assessments in respect of two or more taxpayers who have been served with a copy of the application and who are named in an order of the Tax Court of Canada pursuant to this subsection, it may

    • (a) if none of the taxpayers so named has appealed from such an assessment, proceed to determine the question in such manner as it considers appropriate; or

    • (b) if one or more of the taxpayers so named has or have appealed, make such order joining a party or parties to that or those appeals as it considers appropriate and proceed to determine the question.

  • Determination final and conclusive

    (4) Subject to subsection 174(4.1), where a question set out in an application under this section is determined by the Tax Court of Canada, the determination thereof is final and conclusive for the purposes of any assessments of tax payable by the taxpayers named by it pursuant to subsection 174(3).

  • Appeal

    (4.1) Where a question set out in an application under this section is determined by the Tax Court of Canada, the Minister or any of the taxpayers who have been served with a copy of the application and who are named in an order of the Court pursuant to subsection 174(3) may, in accordance with the provisions of this Act, the Tax Court of Canada Act or the Federal Courts Act, as they relate to appeals from decisions of the Tax Court of Canada, appeal from the determination.

  • Time during consideration of question not counted

    (5) The time between the day on which an application under this section is served on a taxpayer pursuant to subsection 174(2) and

    • (a) in the case of a taxpayer named in an order of the Tax Court of Canada pursuant to subsection 174(3), the day on which the determination becomes final and conclusive and not subject to any appeal, or

    • (b) in the case of any other taxpayer, the day on which the taxpayer is served with notice that the taxpayer has not been named in an order of the Tax Court of Canada pursuant to subsection 174(3),

    shall not be counted in the computation of

    • (c) the periods determined under subsection 152(4),

    • (d) the time for service of a notice of objection to an assessment under section 165, or

    • (e) the time within which an appeal may be instituted under section 169,

    for the purpose of making an assessment of the tax, interest or penalties payable by the taxpayer, serving a notice of objection thereto or instituting an appeal therefrom, as the case may be.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 1 (5th Supp.), s. 174
  • 2002, c. 8, s. 182

This version on Justice Laws

Earlier versions: Justice Laws point-in-time versions of the Act (from 31 August 2004), and CanLII (under “Versions”). On Justice Laws, each version of section 174 links to the one before it.

Enacting and amending legislation

  • R.S., 1985, c. 1 (5th Supp.), s. 174; 2002, c. 8, s. 182; 2013, c. 33, s. 19

Text before 2004 is found in the annual Statutes of Canada cited above. Application and coming-into-force provisions are not part of the consolidation; see the amending Acts.

Cross-references

This section refers to

s. 152s. 165s. 169

Referred to in

s. 225.1

References are generated from the statutory text and list other sections of the Act only.

Citation

Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 174.