For most taxpayers, the day of a Tax Court hearing is the first time they have ever been inside a courtroom for their own matter, and the unfamiliarity is a large part of the anxiety. Knowing the layout, the cast of people, and the order of events takes much of that anxiety away. This guide walks through what actually happens on a hearing day at the Tax Court of Canada: where the hearing takes place, who is in the room, how the proceeding unfolds from opening to close, how giving evidence and being cross-examined work, and when you will learn the result.
Where the hearing happens
The Tax Court of Canada sits in cities across the country, travelling to hear cases where taxpayers live rather than requiring everyone to come to Ottawa. Hearings are held in dedicated Tax Court courtrooms or in rented hearing space in federal buildings. In some circumstances, particularly in the Informal Procedure and for procedural matters, the Court hears matters by video conference or telephone. You will be told in advance where to appear and at what time, and it is worth arriving early to find the room, clear security, and settle before the matter is called.
Who is in the room
- The judge. A judge of the Tax Court of Canada presides. The judge decides the case; there is no jury in Tax Court. You address the judge as "Justice" or, in court, as directed by the registrar.
- The Registrar / court clerk. The registrar manages the courtroom, marks exhibits, administers the oath or affirmation to witnesses, and keeps the record.
- The court reporter. In the General Procedure a reporter records the proceeding so there is a transcript.
- You (the appellant) and your representative. In the Informal Procedure you may appear with a non-lawyer agent or alone; in the General Procedure individuals may self-represent and corporations are generally represented by counsel.
- Department of Justice counsel. The Minister of National Revenue is represented by a lawyer from the Department of Justice — the Crown's counsel — who presents the CRA's position and cross-examines your witnesses.
- The CRA witness or auditor. The Crown will often call the auditor or another CRA official to give evidence about the reassessment.
- Witnesses. Your own witnesses, and any expert witnesses either side calls.
The order of events
A General Procedure trial follows a recognizable sequence; an Informal Procedure hearing compresses several of these steps but keeps the same shape.
1. The matter is called and appearances are taken
The registrar calls the case, and each side identifies who is appearing. The judge may raise housekeeping matters — agreed facts, the list of exhibits, the expected length of the hearing.
2. Opening
The appellant's side usually opens, briefly outlining the issues and what the evidence will show. In a simple Informal Procedure hearing the opening may be very short or folded into the first witness.
3. The appellant's evidence
Because the burden generally rests on the taxpayer, the appellant typically goes first. You and any witnesses are sworn or affirmed, and your side asks questions to bring out your account — this is examination-in-chief. Documents are entered as exhibits as the witnesses speak to them.
4. Cross-examination
After each of your witnesses finishes in chief, Crown counsel cross-examines — testing the evidence, probing inconsistencies, and putting the CRA's theory to the witness. We describe how to handle this below.
5. The Crown's evidence
The Crown then calls its own witnesses, commonly the auditor, who are examined by Crown counsel and cross-examined by your side.
6. Closing submissions
Both sides make closing argument — tying the evidence to the law, addressing the assumptions of fact, and asking for the relief sought. In a General Procedure case the submissions can be detailed; in the Informal Procedure they are usually shorter.
7. Judgment
The judge may deliver an oral judgment from the bench at the end of the hearing, or reserve and issue written reasons later.
How giving evidence works
Giving evidence is, at bottom, telling the judge what happened, under oath, in your own words, with the documents to back it up. The most effective witnesses have reviewed the records, know the timeline, answer the question that was asked rather than the one they wish had been asked, and say plainly when they do not know or remember something. Tax trials very often turn on credibility, and a witness who is organized, candid, and consistent strengthens an otherwise good case. Preparation here means genuine familiarity with the file, not rehearsed answers.
How cross-examination works
Cross-examination by Crown counsel is not a personal attack, even though it can feel like one. Its purpose is to test your evidence and advance the Crown's position. A few practical points: listen carefully to the whole question before answering; answer only what is asked; do not guess at numbers or dates — if you do not know, say so; stay calm and even-tempered; and resist the urge to argue with counsel, which is the judge's role to manage. If a document is put to you, take the time to read it before responding. Composure under cross-examination is itself persuasive.
Exhibits and documents
The documents you rely on are marked as exhibits during the hearing and become part of the record the judge considers. Organized, labelled documents that a witness can speak to are far more persuasive than an unsorted pile handed up at the last moment. In the General Procedure the parties often agree on a joint book of documents in advance, which streamlines the hearing considerably.
When you will learn the result
Sometimes the judge gives an oral judgment at the end of the hearing, with reasons delivered from the bench. More often, particularly in a General Procedure case, the judge reserves — taking time to weigh the evidence and write reasons — and the formal judgment with written reasons follows weeks or months later. When the taxpayer succeeds in part, the most common outcome is that the reassessment is referred back to the Minister for reconsideration and reassessment in accordance with the Court's reasons, after which the CRA issues a corrected reassessment.
A note on settlement
It is worth remembering that most appeals never reach a hearing at all — they settle beforehand, often after discovery. If your matter is heading toward a hearing date and a principled settlement is achievable, that route remains open up to and even at the courthouse door. How settlement works in tax litigation is covered in Settling a Tax Court Appeal Before Trial.
How we help
Barrett Tax Law prepares taxpayers and witnesses for Tax Court hearings, conducts the examination of witnesses, cross-examines the Crown's, and makes the closing submissions, under both the Informal and General Procedures. Preparation — knowing the assumptions of fact, organizing the documents, and readying the witnesses — is where hearings are won. You can read more on our Tax Court of Canada page, and on the surrounding process in The Tax Court of Canada Appeal Process.