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:- Responsibility for legal fees in a sales contract
Position TAKEN: - None
Reasons FOR POSITION TAKEN: - Question does not relate to a tax issue
940787
XXXXXXXXXX M.P. Sarazin
April 20, 1994
Dear Sir\Madam:
Re: Legal Fees
This is in reply to your letter dated March 3, 1994 wherein you requested our comments regarding who would be responsible for the legal fees in the situation where a person (the "Vendor") sells its shares of a company to another person (the "Purchaser") at an agreed price which did not include legal fees.
Although we would be pleased to provide you with any information which you might require concerning the tax treatment of legal fees paid in respect of the purchase or sale of a property, we regret that we are unable to comment on which party would be responsible for the payment of legal fees in any given situation. Such a matter should be resolved by the parties themselves, perhaps after consulting with their legal advisors.
The Department's views on the deductibility of legal fees are expressed in Interpretation Bulletin IT-99R4, a copy of which is enlosed for your information.
Yours truly,
for Director
Reorganizations and Foreign Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1994
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© Sa Majesté la Reine du Chef du Canada, 1994
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