Part XII: Taxation Matters and Costs

93. Scope of certain paragraphs

94. Form of bill of costs

• Margin

• Pagination

• Format

• Particulars

• Goods and services tax

95. Electronic filing of bills of costs for taxation

96. Objections

97. Amount allowed as disbursements on account of use of electronic transmission

98. Taxations involving the Official Assignee, the Official Receiver, the Public Trustee or the Director of Legal Aid

99. Fixing costs in lieu of ordering taxation

99A. Costs Scheduling

99B. Costs Guidelines

93. Scope of certain paragraphs

Paragraphs 94 and 96 apply to all taxations save where the entitlement to costs arose prior to 1 February 1992, in which case the bill should be drawn up in accordance with the provisions of Order 59 of the Rules of Court in force immediately prior to 1 February 1992 and, in accordance with the practice immediately prior to that date. For the avoidance of doubt, the directions contained in this part, save for paragraph 98, do not apply to taxations governed by the Bankruptcy (Costs) Rules or the Insolvency, Restructuring and Dissolution (Personal Insolvency) Rules 2020.

94. Form of bill of costs

The attention of solicitors is drawn to Rules 24 and 31 and Appendix 1 of Order 59 of the Rules of Court. In addition, solicitors are to abide by the following requirements:

Margin

(1) A blank margin not less than 10 mm wide on all four sides is required for each page of the bill of costs.

Pagination

(2) Every page of a bill of costs shall be paginated consecutively at the centre of the top of the page.

Format

(3) This sub-paragraph sets out the format of a bill of costs.

PARTY-AND-PARTY BILLS

(a) For party-and-party bills:

(i) A bill of costs drawn up for taxation between one party to proceedings and another should be divided into 3 separate sections as required by Order 59, Rule 24.

(ii) Form 16 in Appendix A of these Practice Directions should be used for contentious business in respect of work done for a trial or in contemplation of a trial.

(iii) Form 17 should be used for contentious business in respect of, or in contemplation of, work done other than for a trial; such as work done for an appeal or for a specific interlocutory application.

(iv) Form 18 should be used for non-contentious business.

SPECIMEN BILLS

(b) Specimen bills illustrating the use of Forms 16, 17 and 18 are found in Appendix C of these Practice Directions.

SOLICITOR-AND-OWN CLIENT BILLS

(c) A bill of costs drawn up for taxation between a solicitor and his own client should be drawn up in the same manner described in sub-paragraph (3)(a) save as follows:

(i) A solicitor will be deemed to have indicated that all items included in the bill are in relation to work done or disbursements incurred with the approval of the client.

(ii) Any agreement, whether oral or in writing, between the solicitor and his own client relating to the amount of costs payable either as a global sum or in respect of particular items included in the bill should be indicated on the bill. Any agreement between the solicitor and his own client as to the rate to be used to compute the solicitor’s costs should also be indicated in the bill.

BILLS OF COSTS REQUIRED TO BE TAXED UNDER SECTION 18(3) OF THE MOTOR VEHICLES (THIRD-PARTY RISKS AND COMPENSATION) ACT 1960

(d) Whenever a solicitor-and-own-client bill is required to be taxed by virtue of the Motor Vehicles (Third-Party Risks and Compensation) Act 1960, a bill should be drawn up for taxation between the solicitor and his own client and another bill drawn up for taxation between the client and the other party to the proceedings in which the solicitor acted for the client. A waiver of the filing fees for the solicitor-and–own-client bill may be requested when this bill is filed.

(i) The party-and-party bill should be filed first and the solicitor-and-own-client bill should reference the first bill.

(ii) The party-and-party bill and the solicitor-and-own client bill can be drawn up as described in sub-paragraphs (3)(a) and (3)(c) with the modification set out in sub-paragraph (3)(d)(iii) below.

(iii) It is not necessary to repeat serially in the solicitor-and-own-client bill the items which have already been serially set out in the party-and-party bill. It is sufficient, ordinarily, to incorporate all such items by reference and proceed to set out in detail any additional items, i.e. items not already set out in the party-and-party bill. However, if a sum claimed for an item of disbursement in the solicitor-and-own-client bill is different from the corresponding sum claimed in the party-and-party bill, it will be necessary to set out serially again in the solicitor-and-own-client bill all the items of disbursement already set out in the party-and-party bill (including, where appropriate, the different sum or sums claimed) as well as additional items of disbursement not so set out. In addition, the global sums claimed for sections 1 and 2 of the solicitor-and-own-client bill should be indicated at the end of the respective sections whether or not they are the same sums as those claimed for sections 1 and 2 of the party-and-party bill.

Particulars

(4) Sufficient particulars must be included in the bill of costs so as to enable the Registrar to exercise his discretion under paragraph 1(2) of Appendix 1 to Order 59. Without prejudice to sub-paragraph (3), the Registrar may, at the taxation hearing, order the claiming or receiving party to furnish full details in support of the sums claimed under the bill.

Goods and services tax

(5) A party claiming goods and services tax (GST) in a bill of costs must comply with the directions set out in this sub-paragraph. A party who fails to comply with the directions set out in this sub-paragraph will be presumed not to be claiming GST in the bill concerned.

REGISTRATION NUMBERS

(a) For registration numbers,

(i) The GST registration number allocated by the Comptroller of Goods and Services Tax to the solicitors for the receiving party or parties should appear at the top left-hand corner of the first page of the bill of costs.

(ii) The GST registration numbers, if any, allocated to the receiving parties or to any one or more of them, as the case may be, must also appear at the same location in all documents.

(iii) The GST registration numbers should be indicated as follows: “GST Reg. No. (solicitors for plaintiff/solicitors for 1st Defendant/2nd Defendant (or as the case may be)): xxxxx.”

(iv) Where no GST registration number has been allocated to a receiving party, a statement to this effect should be included after the GST registration numbers of the solicitors for the receiving parties, or the receiving parties, as the case may be, in the following manner: “1st and 2nd defendants/3rd plaintiff/(or as the case may be): no GST Reg. No.”

INPUT TAX ALLOWABLE

(b) The proportion of input tax for which the receiving parties, or one or more of them, are not entitled to credit should be stated, as a percentage, in parentheses after the GST registration number of the party or parties concerned. For a person who is not liable to be registered within the meaning of the First Schedule to the Goods and Services Tax Act 1993, this proportion should be 100%.

APPORTIONMENT

(c) For apportionment:

(i) The first and second sections of the bill of costs, which set out the work done in the cause or matter except for taxation of costs and the work done for and in the taxation of costs, should each be divided into such number of parts as will enable the bill to reflect the different rates of GST applicable during the relevant period of time.

(ii) The third section, which sets out the disbursements made in the cause or matter, should similarly be divided, with the first part setting out the disbursements on which no GST is chargeable by the solicitors for the receiving party or the receiving party, as the case may be.

SUMMARY OF THE GOODS AND SERVICES TAX CLAIMED FOR WORK DONE

(d) Where applicable, the following information should be included at the end of the first and of the second sections:

(i) the global sum of costs claimed for work done during each period for which a different rate of GST applies or no GST applies;

(ii) the proportion, as a percentage, of input tax for which the receiving parties, or one or more of them, are not entitled to credit;

(iii) a quantification of the input tax on the costs claimed in the section concerned for which the receiving parties, or one or more of them, are not entitled to credit; and

(iv) a quantification of the GST claimed on the costs claimed in the section concerned.

SUMMARY OF THE GOODS AND SERVICES TAX CLAIMED FOR DISBURSEMENTS

(e) Where applicable, the following information should be included at the end of the third section:

(i) a summation of the disbursements on which no GST is chargeable by the solicitors for the receiving party or the receiving party, as the case may be; a summation of the disbursements on which GST at the applicable rate is chargeable by the solicitors for the receiving party or the receiving party, as the case may be;

(ii) the proportion, as a percentage, of input tax for which the receiving parties, or one or more of them, are not entitled to credit; and

(iii) a quantification of the input tax on the disbursements on which GST is chargeable by the solicitors for the receiving party for which the receiving parties, or one or more of them, are not entitled to credit; and

(iv) a quantification of the GST claimed on the disbursements.

REGISTRAR’S CERTIFICATE

(f) The total amount of GST allowed on a bill of costs will be indicated as a separate item in the Registrar’s certificate. Solicitors are responsible for ensuring that the GST figures accurately reflect the sums allowed by the Registrar.

95. Electronic filing of bills of costs for taxation

(1) Each bill of costs submitted to the Court through the Electronic Filing Service must:

(a) be in Portable Document Format (PDF);

(b) comply with paragraph 94 of these Practice Directions; and

(c) be accompanied by a bill of costs summary, the electronic form of which will be composed online through the Electronic Filing Service. The information required by the Electronic Filing Service to compose the bill of costs summary includes the costs claimed under Sections 1, 2 and 3 of the bill of costs.

(2) As the Registrar’s certificate of costs under Order 59, Rule 32 of the Rules of Court will be composed online based on the summary in sub-paragraph (1)(c), solicitors should ensure that the information contained in the summary accurately reflects the information contained in the bill of costs submitted. Solicitors should also ensure that the amounts claimed for goods and services tax in the Registrar’s certificate of costs are correct.

(3) There is no necessity for lawyers to collect the taxed bill of costs from the Legal Registry to prepare the Registrar’s certificate. The procedure for preparation of draft orders in paragraph 75 of these Practice Directions shall, mutatis mutandis, apply to the preparation of the Registrar’s certificate.

(4) For the avoidance of doubt, the Registrar’s certificate of costs shall be filed as a Portable Document Format (PDF) document for bills of costs filed before 1 January 2013. For all other cases, the Registrar’s certificate of costs shall be composed online through the Electronic Filing Service.

96. Objections

(1) Any objections in principle or as to quantum of the items claimed in a bill of costs must be indicated by the filing and service of a Notice of Dispute in Form 19 of Appendix A of these Practice Directions at least 7 days before the date fixed by the Registrar for the taxation of the bill of costs.

(2) The Notice of Dispute shall be filed through the Electronic Filing Service in Portable Document Format (PDF) and be accompanied by a Notice of Dispute summary, the electronic form of which will be composed online through the Electronic Filing Service. The information required by the Electronic Filing Service to compose the Notice of Dispute summary includes the amounts of costs to be awarded under Sections 1, 2 and 3 of the bill of costs according to the respondent.

97. Amount allowed as disbursements on account of use of Electronic Filing Service

(1) If a document is filed using the Electronic Filing Service, $0.40 for each page of the document thus filed shall be allowed as costs between parties to proceedings. Such costs may be claimed by a receiving party from the paying party where the receiving party is entitled to costs for the filing of the document. These costs shall be allowed in addition to all other disbursements and Court fees.

(2) This paragraph shall apply to the taxation of costs as well as cases where the Court fixes a gross sum in lieu of taxation.

(3) This paragraph shall not apply to any document filed through the service bureau.

98. Taxations involving the Official Assignee, the Official Receiver, the Public Trustee or the Director of Legal Aid

(1) The directions contained in this paragraph shall be followed in respect of all taxations in which the Official Assignee, the Official Receiver, the Public Trustee or the Director of Legal Aid is involved.

(2) Subject to sub-paragraph (4) below, for all taxations in which the Official Assignee, the Official Receiver, the Public Trustee or the Director of Legal Aid is involved:

(a) the receiving party must, prior to the filing of the bill of costs in Court through the Electronic Filing Service, send the bill of costs to be filed to the Official Assignee, the Official Receiver, the Public Trustee or the Director of Legal Aid, as the case may be;

(b) the Official Assignee, the Official Receiver, the Public Trustee or the Director of Legal Aid should then inform the receiving party whether he or she agrees or disagrees with the amounts claimed in the bill of costs; and

(c) when filing the bill of costs in Court through the Electronic Filing Service, the receiving party must state whether the Official Assignee, the Official Receiver, the Public Trustee or the Director of Legal Aid disagrees with the amounts claimed in the bill of costs. The bill of costs should also be served on the Official Assignee, the Official Receiver, the Public Trustee or the Director of Legal Aid, as may be applicable, on the same day that the bill of costs is filed.

(3) If the Official Assignee, the Official Receiver, the Public Trustee or the Director of Legal Aid, as may be applicable, agrees with the amounts claimed in the bill of costs, then:

(a) for solicitor-and-client costs required to be taxed pursuant to the provisions of the Motor Vehicles (Third-Party Risks and Compensation) Act 1960:

(i) where no party-and-party bill of costs has been filed; or

(ii) where the solicitor-and-client costs is not referenced to a party-and-party bill filed earlier,

the receiving party and the Public Trustee need not attend at the taxation and the bill will be taxed in their absence. However, if the taxing Registrar disagrees with the quantum of costs agreed on, he or she may nonetheless direct the attendance of the receiving party and the Public Trustee at a later date;

(b) for:

(i) party-and-party bills filed by the creditor under the Bankruptcy (Costs) Rules or the Insolvency, Restructuring and Dissolution (Personal Insolvency) Rules 2020, to which the estate of the bankrupt is the respondent;

(ii) party-and-party bills filed by the creditor in companies winding-up matters where the Official Receiver is appointed liquidator and to which the company in liquidation is the respondent to the bill of costs; or

(iii) solicitor-and-client bills filed pursuant to the Legal Aid and Advice Act 1995 where the Director of Legal Aid is the respondent,

the receiving party and the Official Assignee, the Official Receiver or the Director of Legal Aid, as the case may be, need not attend at the taxation and the bill will be taxed in their absence. However, if the taxing Registrar disagrees with the quantum of costs agreed on, he or she may nonetheless direct the attendance of the receiving party and the Official Assignee, the Official Receiver or the Director of Legal Aid, as the case may be, at a later date.

(4) If solicitor-and-client costs are required to be taxed pursuant to the provisions of the Motor Vehicles (Third-Party Risks and Compensation) Act 1960 and the bill of costs claiming the same is referenced to an earlier party-and-party bill filed pursuant to paragraph 94(3)(d), the Public Trustee need not attend the taxation of the bill and the party-and-party and solicitor-and-client costs will be taxed in the absence of the Public Trustee. However, the Public Trustee may attend at the taxation if he so wishes, and shall attend if an express direction is made by the taxing Registrar that he attend in relation to a particular bill of costs.

99. Fixing costs in lieu of ordering taxation

(1) The Court may, where appropriate, fix costs at the end of a hearing or trial in lieu of ordering taxation. Counsel should therefore be prepared to make submissions on the entitlement to and quantum of costs at the end of a hearing or trial, whether before or after judgment is delivered.

(2) Counsel should note that the Court may fix costs where costs have been ordered to be in the cause, or on hearing applications for dismissal or striking out pursuant to an unless order, and be prepared to make submissions accordingly.

99A. Costs Scheduling

(1) The directions contained in this paragraph shall apply to:

(a) trials in open court for all writ actions and originating summonses ordered to be continued as if the cause or matter had been begun by writ; and

(b) originating summonses involving cross-examination of any deponent.

(2) Each party to the proceedings described in sub-paragraph (1) shall be required to file a costs schedule using Form 18A in Appendix A of these Practice Directions. The costs schedule should set out with sufficient particularity the quantum of party-and-party costs and disbursements that the party intends to claim in the event that the party succeeds. A specimen form illustrating the use of Form 18A can be found in Appendix F of these Practice Directions.

(3) The relevant costs schedule will be taken into account for the purposes of assessing the quantum of costs to be awarded for the proceedings.

(4) The costs schedule for the proceedings described in sub-paragraphs (1)(a) and (b) shall be filed together with the parties’ written closing submissions or, where there are no written closing submissions, before the parties’ oral closing submissions are presented.

99B. Costs Guidelines

(1) Solicitors making submissions on party-and-party costs (whether at taxation hearings or otherwise) or preparing their costs schedules pursuant to paragraph 99A of these Practice Directions may have regard to the costs guidelines set out in Appendix G of these Practice Directions (the “Costs Guidelines”).

(2) The Costs Guidelines are to serve only as a general guide for party-and-party costs awards in the Supreme Court. The precise amount of costs awarded remains at the discretion of the Court making the award and the Court may depart from the amounts set out in the Costs Guidelines depending on the circumstances of each case.

(3) For the avoidance of doubt, nothing in the Costs Guidelines is intended to guide or influence the charging of solicitor-and-client costs.