In McKenzie v R, 2012 TCC 329, the court held that a settlement offer must include a “degree of compromise” of the offeror’s position. A waiver of legal fees by itself isn’t enough to earn an entitlement to enhanced costs. In Standard Life Assurance Company of Canada v R, 2015 TCC 138, however, the court held that McKenzie should be used with caution, which leaves open the possibility that an offer of a waiver of costs alone could facilitate a claim for enhanced costs.
Rebecca D Loo and Robert G Kreklewetz “Settling Tax Disputes” Canadian Tax Focus 11:2 (May 2021)
