The practice of tax litigation includes all aspects of representing clients in disputes with tax authorities. Normally the resolution of a tax dispute begins with representations to auditors or other government officials empowered to assess or reassess tax. In many cases representations at the audit stage will resolve the dispute. Failing that, the process of representation generally proceeds to an administrative panel and should at least establish the legal and factual foundation on which the dispute may be resolved by a court. Many cases are resolved during the administrative appeal process.
A taxpayer disputing an assessment of tax or the legality of an administrative act of a tax authority has recourse to a trial court and then an appellate court. An appeal of a federal tax assessment is commenced in the Tax Court of Canada, from which an appeal lies to the Federal Court of Appeal. An appeal of a provincial or municipal tax assessment is commenced in the superior court of the province, from which an appeal lies in most cases to the appellate court of the province. A claim relating to a collateral issue, such as unlawful audit or collection procedures or abuse of statutory authority, may be commenced in either the Trial Division of the Federal Court of Canada, from which an appeal generally lies to the Federal Court of Appeal, or the superior court of the province, from which an appeal generally lies to the appellate court of the province.
Cases involving allegations of tax evasion or other criminal offences relating to tax are heard in the first instance in the criminal court of the province where the offence or offences are alleged to have occurred. An appeal from conviction lies to a superior or appellate court of that province.
A decision of any appellate court may be appealed to the Supreme Court of Canada if leave to appeal is granted.