If you are reassessed and cannot resolve your dispute with the Canada Revenue Agency, the next step is to institute an appeal before the Tax Court of Canada. An appeal is instituted by filing a notice of appeal and paying the corresponding court fee.

An appeal can be instituted under the General Procedure Rules or the Informal Procedure Rules. You should be mindful of the differences between the two streams when making your election.

Very broadly, the Informal Procedure Rules are intended for cases where the amount at issue is below a certain threshold. Cases proceeding under the Informal Procedure Rules often deal with self-represented litigants. The Court is not bound by the rules of evidence and the cases generally proceed faster. Unlike cases that proceed under the General Procedure Rules, there is no filing fee.

In contrast, the General Procedure Rules follow the normal path of litigation, including exchange of lists of documents and examinations for discovery. The rules of evidence apply and cases generally take longer to be heard because more procedural steps are involved.

If you lost your case before the Tax Court of Canada, you may appeal to the Federal Court of Appeal. The Federal Court of Appeal is not a court of first instance. The parties cannot present new evidence, except for special circumstances. The panel at the Federal Court of Appeal is generally composed of 3 judges.

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