Les Laiteries Leclerc Inc. v. MNR, 71 DTC 702, [1971] Tax ABC 1061

Professional fees which were incurred for the purpose of a bond issue which did not take place, and which issue would have been the means of acquiring the assets of a company similar to the taxpayer, were non-deductible. Because the professional fees were to have assisted in acquiring the total assets of another company, they were not operating expenses and instead were paid on account of capital.

Professional fees that were incurred for the purpose of a bond issue which did not take place and which was to have been a means of acquiring the assets of a company similar to the taxpayer, were non-deductible. For such expenses to have been incurred in the course of a borrowing of money, it was necessary for the bonds actually to have been issued.