Dow Chemical And Iris Technologies: Supreme Court Rules On Jurisdictional Issues In Tax Matters

In this Update:

• On June 28, 2024, the Supreme Court released its decisions in Dow Chemical and Iris Technologies regarding the respective jurisdictions of the Tax Court and Federal Court in tax matters
• In Dow Chemical, the 4-3 majority of the Supreme Court rejected the taxpayer's argument that the Tax Court had jurisdiction to review the Minister's decision to deny a downward transfer pricing adjustment under subsection 247(10) on the basis that it is a discretionary decision, and therefore within the exclusive jurisdiction of the Federal Court
• The companion appeal, Iris Technologies, also confirmed the Federal Court's jurisdiction over challenges to discretionary decisions by the Minister; however, the 4-3 majority held that the taxpayer's application for judicial review raised two claims that collaterally challenged the correctness of the assessments and therefore fell within the Tax Court's jurisdiction and, while the third was within the Federal Court's