Guidelines for the Taxation of Costs

Revised as of 24 April 2007

Introduction

1.     These Guidelines, which have been adopted by the Commission's Legal Directorate, are to be employed by taxation officers appointed by the Commission to tax costs awarded to persons pursuant to sections 56 of the Telecommunications Act and 44 of the CRTC Telecommunications Rules of Procedure (the Rules). The Guidelines do not detract from or limit the taxation officers' general discretion. They shall apply to taxation of costs made in respect of costs awarded by the Commission on or after 15 May 1998. [Mod. May 1998]

Interpretation

2.     In these Guidelines, as well as in Appendix A and the related Forms, the following words or expressions have the following meanings:

(a) "Applicant" means a person to whom costs have been awarded by the Commission;

(b) "Respondent" means a person against whom the costs have been awarded by the Commission;

(c) "Legal assistant" means a qualified law clerk or paralegal;

(d) "Consultant" or "Analyst" means a person who participated in a proceeding, but who was not a person who acted as legal counsel or an expert witness;

(e) "Expert Witness" means a person who provides an independent professional opinion or judgment on a matter in a proceeding by filing evidence in his or her name, or by testifying as an expert witness, and who is not an in-house analyst/consultant or in-house legal counsel of the applicant. [Mod. May 1998]

(f) "Claimant" means a legal counsel, an articling student, a legal assistant, an expert witness, a consultant or an analyst who provided services to the applicant, and in respect of whom the applicant is claiming recovery of fees. It also includes an applicant who is an individual to whom costs have been awarded by the Commission. [Mod. May 1998]

3.     These Guidelines are intended to implement the following principles:

(a) costs awarded shall not exceed those necessarily and reasonably incurred by the intervener in connection with its intervention (See paragraph 44(6)(b) of the Rules);

(b) the taxation process should be fair to all parties concerned;

(c) the taxation process should be efficient and effective for the parties and for the Commission;

(d) to the extent possible and advisable, the taxation process should provide the parties with certainty of result;

(e) the taxation process must maintain the flexibility necessary to ensure that costs are awarded in light of the particular circumstances of a proceeding or intervention; and

(f) the taxation process must take into account financial assistance from government or other sources (See subsection 44(7) of the Rules and Bell Canada v. Consumers' Association of Canada [1986] 1 S.C.R. 190).

General Principles and Verification

4.     The applicant shall file, directly with the taxation officer, detailed and accurate accounts of the costs claimed, recorded on the Summary Sheets, in Form I (for legal counsel, articling students and legal assistants), Form II (for expert witnesses) and Form III (for consultants and analysts), together with invoices and receipts necessary to support those costs where such invoices and receipts are required (as outlined below under section 31). The applicant shall file an affidavit of disbursements in Form IV, including a summary statement of disbursements as Exhibit A. The applicant shall also file a summary of the total fees and disbursements claimed as prescribed in Form V. Costs will generally not be taxed unless and until these forms, completed in full, have been filed with the taxation officer. The filing of these forms and accompanying submissions shall fulfill the requirement to file a bill of costs and affidavit of disbursements contained in subsection 44(8) of the Rules. All documents filed with the taxation officer must also be served upon all the respondents. [Mod. May 1998]

5.     Subject to the respondent's right to comment thereon, and provided the applicant's claim is within these Guidelines, it will normally be accepted as presented. Where, however, there appears to have been a departure from these Guidelines or from their intent, the taxation officer may reduce the claim to a level that, in the taxation officer's discretion, is deemed appropriate.

6.     In the event that the applicant or respondent believes that exceptional circumstances exist warranting a departure from these Guidelines, then a brief written submission showing cause why the Guidelines should be departed from and the specific nature of the departure requested must be filed with that party's first submission to the Commission in respect of the taxation. If such a submission is not so filed by the applicant then the taxation officer may disallow a departure from these Guidelines without receiving further submissions.

7.     The taxation officer may request further documentation or submissions to substantiate a disputed or questionable claim. In the event that the documentation or submissions are not filed with the taxation officer in accordance with the taxation officer's request, the applicant's claim in respect of those costs will generally be disallowed in its entirety. [Mod. May 1998]

Fees

General

8.     Consistent with past practice, costs generally will not be awarded for time spent by the applicant's support staff, administrative staff, officers and directors, acting as such, in connection with its participation in the proceeding.

9.     Fees as billed to the applicant for the services provided by claimants will normally be allowed, provided they are based on (a) the current allowable daily or hourly rates which are set out in Appendix A; and, (b) time which is not excessive under the circumstances.

10.    If the applicant is claiming costs which are to be calculated on an hourly basis, all persons for whom work is being so claimed must, in general, keep hourly records which may be requested by the taxation officer. Hourly records must contain at least the following information: the date on which the work was done, the amount of time spent on the work and a brief description of that work. In the event that the taxation officer requests such records and they are not available, the applicant's claim in respect of that work will generally be disallowed in its entirety. [Mod. May 1998]

Excessive Time

11.     In judging whether or not the time expended by a claimant is excessive under the circumstances, the considerations which may be taken into account by the taxation officer include:

(a) the extent of the applicant's participation and the degree of complexity of the issues to which that participation related;

(b) the degree of responsibility assumed by the claimant;

(c) the duplication of tasks among claimants;

(d) experience of the claimant; and

(e) time claimed and awarded, globally, by specific service or both, in the proceeding or in other proceedings. [Mod. May 1998]

In-house Services

12.     An applicant who employs an in-house salaried legal counsel, articling student, legal assistant, or analyst/consultant will be permitted to recover costs, at the daily rate set out in Appendix A, for that person's work which is necessarily and reasonably undertaken in connection with the proceeding. [Mod. May 1998]

Legal Counsel Fees

13.     The hourly rate applicable to a particular counsel, other than in-house counsel, will be based on that legal counsel's completed years as a practising lawyer. Years as a practising lawyer shall be calculated as at the date of the commencement of the proceeding. [Mod. May 1998]

Expert Witnesses

14.     Expert witnesses may claim the hourly rate set out in Appendix A for all services other than attendance at an oral hearing in order to testify. The daily rate set out in Appendix A may be claimed for attendance at an oral hearing in order to testify. [Mod. May 1998]

15.     In judging whether the time claimed by an expert witness is excessive, in addition to the circumstances set out in section 11 of these Guidelines, the taxation officer will also consider any overlap between the evidence prepared by the expert witness for the proceeding at issue and for earlier proceedings before the Commission in which expert witnesses may have provided evidence. [Mod. May 1998]

Consultants and Analysts

16.     The hourly rate applicable to a particular consultant or analyst will be based on the number of completed years that person has been acting as consultant or analyst. Years shall be calculated as at the date of the commencement of the proceeding.

Applicable Time Increments

17.     Claimants must use the applicable time increments set out in Appendix A.

18.     In the case of rates expressed in daily increments in Appendix A (i.e. those for in-house legal counsel, articling students, legal assistants, analysts/consultants, and expert witnesses), a day shall be deemed to consist of at least 7 full hours of work on the proceeding, not including breaks. If fewer than 7 hours in a day are worked, then the applicant shall reduce its claim for that day using quarter-day increments. In the case of daily rates, no amount in addition to the daily fee shall be permitted for days in which more than 7 hours of work were spent on the proceeding. [Mod. May 1998]

Time for Travel and Meals

19.     Time spent travelling or eating meals will not per se be allowed by the taxation officer. This does not prevent the applicant from being awarded costs for work performed in relation to the proceeding while in transit or while eating meals.

Disbursements

General

20.     Reasonable disbursements necessarily incurred in connection with the applicant's participation in the proceeding will generally be allowed, subject to these Guidelines.

21.     Disbursements incurred by volunteers and by employees of applicants will be allowed in the same manner as disbursements incurred by legal counsel, articling students, legal assistants, consultants, analysts and expert witnesses. [Mod. May 1998] 

Travel, Accommodation and Meals

22.     Claims for accommodation will generally only be allowed in connection with hearings or meetings which take place at a distance greater than 50 kilometers from the regular place of work of the person who makes those disbursements. [Mod. May 1998]

23.     In respect of accommodation, reasonable disbursements for hotels will normally be allowed, together with reasonable incidental expenses. Claims for accommodation in a private residence will be allowed at the fixed daily rate set out in Appendix A. [Mod. May 1998]

24.     The daily meal allowance set out in Appendix A will apply where meals are taken in connection with hearings or meetings which take place at a distance greater than 50 kilometers from the regular place of work of the person who makes those disbursements. Receipts will not be required for this per diem meal allowance. [Mod. May 1998]

25.     The individual meal allowance set out in Appendix A will apply where meals are taken in connection with hearings or meetings which take place at a distance of 50 kilometers or less from the regular place of work of the person who makes those disbursements. Receipts will not be required, unless requested by the taxation officer. [Mod. May 1998]

26.     In respect of inter-city travel, disbursements will be allowed for the most efficient means of transportation. Automobile travel will be compensated at the rate set out in Appendix A. In respect of air travel, it will be expected that persons purchase a discounted ticket, if available. Best efforts should be made to purchase a ticket as early in advance as possible in order to fully benefit from the discounts available. Penalty fees reasonably incurred because of a change in a person's return schedule will be allowed. Generally, disbursements in excess of economy fares will not be allowed. [Mod. May 1998]

27.     In respect of intra-city travel, local taxi fares, parking expenses or other local travel disbursements may be claimed provided that such disbursements are necessarily and reasonably incurred, and provided that they would not otherwise normally have been incurred.

Photocopying and Other Disbursements

28.     Disbursements for photocopies made on the applicant's photocopying equipment shall be allowed at the rate set out in Appendix A. Photocopies made using an outside photocopying service shall be recovered as an ordinary disbursement.

29.     All other reasonable disbursements may be allowed in the taxation officer's sole discretion.

Submission of Disbursement Claims

30.     All claims for disbursements shall be submitted in accordance with Exhibit A of Form IV. An affidavit of disbursements in Form IV, which shall be sworn or affirmed by an officer of the applicant or by its legal counsel, shall also be filed. [Mod. May 1998]

31.     The applicant shall file receipts for all claims of disbursements relating to hotel accommodation and inter-city air, train or bus travel. Where receipts are not available, the applicant shall file other evidence of disbursement. Receipts should be photocopied legibly onto numbered pages with a different series of pages for each legal/consulting firm, company, organization or individual that has expended disbursements. [Mod. May 1998]

32.     All applicants are expected to keep receipts for all disbursements claimed. Applicants are not expected to file receipts for disbursements, other than those specified in section 31, unless requested by the taxation officer. Failure to provide receipts upon request by the taxation officer will generally result in the disallowance of the disbursements in question. [Mod. May 1998]

Financial Assistance, GST, PST and Costs of the Taxation

33.     In its affidavit of disbursements, an applicant shall indicate whether or not it has or will receive financial assistance in connection with its participation in the particular proceeding. This does not include general fundraising revenues or other support.

34.     In the event that an applicant has received or will receive financial assistance in connection with its intervention, then the amount of costs taxed by the taxation officer shall be reduced by that amount. In the event that the Commission has awarded partial costs then the reduction to take into account financial assistance shall first be applied to the amount of costs taxed by the taxation officer which are not recoverable by the applicant under the Commission's cost order.

Example:

Hypothesis:

1.  The applicant has been awarded partial costs of 70%.

2.  The applicant has submitted costs of $110,000.

3.  The taxation officer has allowed costs of $100,000.

4.  The applicant has received financial assistance of $40,000.

Analysis:

The amount of costs taxed by the taxation officer which are not recoverable by the applicant under the cost order is $30,000 [i.e. 30% x $100,000 = $30,000]. The financial assistance is first deducted against that amount of $30,000 [$30,000 - $40,000 = ($10,000)]. An amount of $10,000 has yet to be deducted. Therefore, that amount is then deducted against the amount of costs taxed by the taxation officer which are recoverable under the cost order. The amount recoverable after deduction of the financial assistance is $60,000 [i.e. (70% x $100,000) - $10,000 = $60,000].

35.     In its affidavit of disbursements and as required in the Forms, the applicant shall indicate whether or not it is entitled to a rebate in connection with the federal Goods and Services Tax (GST), a provincial sales tax (PST) or any other applicable tax, the extent of the rebate and the basis of its eligibility. The taxation officer shall take that information into account when assessing the tax payable on the costs claimed. [Mod. May 1998]

36.     Fees and disbursements reasonably and necessarily incurred in the course of submitting the information required under section 4 shall normally be allowed by the taxation officer.

Electronic Filing

37.     In addition to hard copy filings, parties are encouraged to file electronic versions of their documents in accordance with the Commission's Interim Telecom Guidelines for the Handling of Machine-Readable Files, dated 30 November 1995. Filings should be made to the attention of the designated taxation officer. The Commission's Internet email address for electronically filed documents is public.telecom@crtc.gc.ca. [Mod. May 1998]

Revised Appendix A to Guidelines for the Taxation of Costs

[Mod. 24 April 2007]

Disbursements

Travel by automobile: $0.35 per km

Meals:

• Per diem rate applies where meals are taken in connection with a hearing or meetings which take place at a distance of more than 50 kilometres from regular place of work:

• Meal allowance where meals taken in connection with a hearing or meetings which take place at a distance of 50 kilometres or less:

In-house photocopies: $0.15 per copy

Date modified:

2007-04-24