Standard of review to be applied by Appellate Courts in reviewing decisions of the Tax Court of Canada

The Supreme Court of Canada has established the standard of review to be applied by Appellate Courts in reviewing decisions of the Tax Court of Canada. For questions of law, the standard is correctness while for findings of fact, inferences or conclusions of fact and conclusions of mixed fact and law, the standard is palpable and overriding error. There is, however, an exception in regard to conclusions of mixed fact and law. If a clear legal error can be isolated from the facts, the error will be reviewed on a correctness standard.