Admissibility of Expert Evidence in Tax Court
As outlined in the decision of the Tax Court of Canada in Cambridge Leasing Ltd. v. The King, 2024 TCC 136, determining the admissibility of expert evidence is a two-stage process:
- Threshold admissibility: The proposed expert evidence must be logically relevant, necessary to assist the trier of fact, there must not be any other applicable exclusionary rules, and the expert must be properly qualified (White Burgess Langille Inman v Abbott and Haliburton, 2015 SCC 23 at para. 23 & R v Abbey, 2009 ONCA 624 at para. 82). The evidence is assessed on a yes/no basis at the threshold stage.
The evidence will be relevant if it makes the existence or non-existence of a fact in issue more or less likely than without the evidence, judged as a matter of human experience and logic (Yao v The Queen, 2022 TCC 23 at para. 17). The evidence will be reasonably necessary if it is likely outside the ordinary experience and knowledge of the trier of fact.
2. Gatekeeper function: The Court must be satisfied the probative value of admitting the evidence outweighs the potential prejudice, time cost, and risk of confusion of its admission, bearing in mind parties have the right to put forward the most complete evidentiary record consistent with the rules of evidence.
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