Two courts of appeal have recently considered attempts to litigate personal income tax disputes outside the Tax Court of Canada. Smith et al v. Canada (Attorney General) et al, 2006 BCCA 237, and The Queen v. Roitman, 2006 FCA 266, show that it is quite difficult to resolve a dispute with the CRA otherwise than by proceeding to Tax Court. That said, the decisions seem to leave open the possibility that one could sue the CRA for a liability arising out of fraudulent CRA conduct (see ¶27 of Roitman).
