delete Tax Court of Canada Rules (Informal Procedure)
These rules govern the Tax Court of Canada's informal procedure for tax appeals involving small amounts (≤$12,000 or losses ≤$24,000). They establish filing methods, cost schedules with fixed counsel fees ($185-$375), witness fees ($75-300/day), and procedures for applications, discontinuance, and contempt. The regulation creates a simplified, low-cost track for tax disputes with prescribed forms and fee caps.
This regulation distorts the legal services market by imposing arbitrary fee schedules and procedural mandates that restrict voluntary contracting. The state-set counsel fees ($185-375) and witness fees ($75-300) prevent competitive pricing and innovation in dispute resolution services. While intended to lower costs, such price controls create shortages of quality providers and reduce supply of legal assistance over time. The 'informal procedure' is itself a government-created monopoly alternative that crowds out private arbitration and mediation options that could emerge in a truly free market. If deleted, taxpayers with small disputes could still access justice through competitive, unregulated legal markets or private arbitration firms that would innovate to serve this segment efficiently. The unintended consequence of preserving this rule is institutionalizing a suboptimal, one-size-fits-all process that prevents price discovery, quality competition, and entrepreneurial solutions to affordable tax dispute resolution.