Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Are legal fees, which are described in paragraph 18 of IT-99R5, deductible on a cash or accrual basis?
Position: They may be deducted on an accrual basis.
Reasons: Paragraph 18 refers to legal fees “incurred”.
XXXXXXXXXX 2001-006725
M. Eisner, CA
May 9, 2001
Dear XXXXXXXXXX:
Re: Legal Fees
This is in reply to your letter of January 24, 2001, wherein you requested our views on whether legal fees, described in paragraph 18 of Interpretation Bulletin IT-99R5 (Consolidated), are deductible on a cash or accrual basis.
Paragraph 18 of IT-99R5 provides that legal fees “incurred”, for the purposes described therein, are deductible. Accordingly, it is our view that legal fees that qualify for deduction, as described in paragraph 18 of IT-99R5, may be deducted on an accrual basis.
We trust that these comments will be of assistance.
Yours truly,
Milled Azzi, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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