Tax Court of Canada finds that there were no ITCs respecting services of criminal counsel which permitted an individual to resume a business

Operations at an individual’s swimming school were suspended as a result of charges brought against him respecting alleged misconduct with a 15-year old female instructor – and he incurred significant fees in obtaining an acquittal. Although Favreau J accepted that the individual intended to resume the operations of his business when possible, he nonetheless found that, as the legal fees were “incurred to defend the Appellant’s reputation,” the legal services did not qualify as being acquired in the course of commercial activities and for the purpose of making taxable supplies, so that no input tax credits were available.

Neal Armstrong. Summary of Thim… v. The Queen, 2017 TCC 164 under ETA s. 141.01(2).