Legal and other Professional Fees

Commentary

As the two concepts are often addressed in an integrated manner in the jurisprudence, this commentary reviews whether professional fees are...

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Cases

Gouveia v. Canada, 2014 FCA 289

The taxpayer who was the CEO of an income trust and the holder, through a personal holding company of 8.1% of its units, and who provided...

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Canada v. Doiron, 2012 DTC 5103 [at 7081], 2012 FCA 71

The taxpayer, a lawyer, received a four-year sentence and was suspended from practising law as a result of his conviction for obstruction of...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 169 - Subsection 169(1) legal fees did not relate to a law practice that was suspended 124

Bolen v. Canada, 2007 DTC 5559, 2007 FCA 293

The taxpayer earned his living as a prospector by staking claims and obtaining leases and selling them to mining companies for cash and other...

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Cimolai v. Canada, 2007 DTC 5019, 2006 FCA 348, aff'd , 2009 DTC 6115, 2006 FCA 348

Legal expenses incurred by the taxpayer, who was employed as a medical practitioner by a hospital, in a defamation action brought against his...

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Plattig v. Attorney General of Canada, 2003 DTC 5601 (FCTD)

Legal fees incurred by the taxpayer in claiming and ultimately being awarded maintenance pursuant to section 57 of the Family Relations Act...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4.2) 64

Coté v. The Queen, 99 DTC 5215 (FCTD)

A research program supervised by the taxpayer, who was associated with a Montreal hospital, was found to be a business in itself that was intended...

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MNR v. Poulin, 96 DTC 6477, 204 N.R. 376 (FCA)

In finding that a real estate agent could not deduct legal expenses incurred in defending a suit alleging fraud and misrepresentation while...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Start-Up and Liquidation Costs business does not cease if still dealing with consequences of business acts 105

Doz v. The Queen, 95 DTC 5585, [1995] 2 CTC 312 (FCTD)

Legal fees incurred by the taxpayer in defending against contempt charges did not have a sufficiently direct connection with an objective of...

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Upenieks v. The Queen, 94 DTC 6656 (FCA)

Legal fees incurred by the taxpayer (a medical doctor) in bringing an unsuccessful libel suit against the Toronto Star were not deductible given...

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Friedland v. The Queen, 89 DTC 5341, [1989] 2 CTC 79 (FCTD)

An individual ("Friedland") carried on his business of economics consulting through a corporation ("SFRA"). When dissatisfied clients brought...

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The Queen v. Jaqer Homes Ltd., 88 DTC 6119, [1988] 1 CTC 215 (FCA)

Legal fees incurred by two companies in successfully defending against a petition, brought by a minority shareholder, to wind the two companies...

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Border Chemical Co. Ltd. v. The Queen, 87 DTC 5391, [1987] 2 CTC 183 (FCTD)

Legal fees paid by the taxpayer for the successful defence of its president against fraud charges brought in connection with alleged activities in...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Evidence 55

The Queen v. Lalonde, 84 DTC 6159 (FCTD), aff'd 89 DTC 5286 (FCA)

Legal fees incurred by a doctor in order to dispute a decision not to build a comprehensive school in his immediate area were incurred for the...

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Philp v. The Queen, 83 DTC 5424, [1983] CTC 403 (FCTD)

Legal fees and accounting fees incurred in relation to alimony and divorce arrangements were admitted by the taxpayer to have been incurred not to...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 60.1 - Subsection 60.1(1) 26

The Queen v. Burgess, 81 DTC 5192, [1981] CTC 258 (FCTD)

The right of a wife to support from her husband terminates upon the granting of the decree absolute, in the absence of the granting of a...

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BP Oil Ltd. v. The Queen, 80 DTC 6331, [1980] CTC 408 (FCA)

Legal expenses which the appellant incurred in unsuccessfully opposing an application for an injunction prohibiting the operation of its service...

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Neonex International Ltd. v. The Queen, 78 DTC 6339, [1978] CTC 485 (FCA)

Legal fees incurred in connection with an abortive attempt to take over a company were made on capital account.

In the Federal Court, Trial...

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Farmers Mutual Petroleums Limited v. Minister of National Revenue, 67 DTC 5277, [1967] CTC 396, [1968] S.C.R. 59

The taxpayer, which had acquired the title to minerals from various Saskatchewan landowners, incurred legal expenses in defending actions by...

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British Columbia Power Corporation, Limited v. Minister of National Revenue, 67 DTC 5258, [1967] CTC 406, [1968] S.C.R. 17

The taxpayer, which owned all of the issued common shares of a public utility company, incurred approximately $1.2 million in legal fees in a...

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Reader's Digest Association (Canada) Ltd. v. MNR, 66 DTC 5416, [1966] CTC 626 (Ex. Ct.)

The taxpayer incurred legal fees in mounting an unsuccessful action to challenge the imposition by the federal government of a 20% excise tax on...

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Premium Iron Ores Ltd. v. Minister of National Revenue, 66 DTC 5280, [1966] CTC 391, [1966] S.C.R. 685

When the taxpayer learned that the American revenue authorities were taking the position that it had a permanent establishment in the U.S., it...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose legal exepnses incurred in challenging US assessments - deductible 144
Tax Topics - Income Tax Act - Section 9 - Nature of Income prior enforceable agreement to on-pay the receipt 113

Meteor Homes Ltd. v. MNR, 61 DTC 1001, [1960] CTC 419 (Ex. Ct.)

A payment made by the taxpayer to one group of shareholders was found to have been made to enable another group of shareholders to obtain absolute...

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Rolland Paper Co. Ltd. v. MNR, 60 DTC 1095, [1960] CTC 158 (Ex. Ct.)

The taxpayer was found guilty of illegal trade practices (conspiring to lessen competition in the fine papers industry) and sentenced to pay...

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Evans v. Minister of National Revenue, 60 DTC 1047, [1960] CTC 69, [1960] S.C.R. 391

The taxpayer incurred legal fees in successfully establishing that for the remainder of her lifetime she was entitled to a 1/3 share of the income...

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Bannerman v. Minister of National Revenue, 59 DTC 1126, [1959] CTC 214, [1959] S.C.R. 562

When the taxpayer discovered that his co-shareholder had been diverting company funds for his own use during the previous few years, he brought a...

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Minister of National Revenue v. Goldsmith Bros. Smelting & Refining Co., 54 DTC 1011, [1954] CTC 28, [1954] S.C.R. 55

The taxpayer successfully defended charges under the Combines Investigation Act that it had combined with others to prevent or unduly lessen the...

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Minister of National Revenue v. The Kellogg Company of Canada Ltd., 2 DTC 601, [1943] CTC 1, [1943] S.C.R. 58

The taxpayer successfully defended a suit by the Canadian Shredded Wheat Company claiming that the taxpayer was infringing its registered...

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Minister of National Revenue v. Dominion Natural Gas Co. Ltd., 1 DTC 499-133, [1940-41] CTC 155, [1941] S.C.R. 19

The taxpayer had continuously supplied the Township of Barton with natural gas under a by-law of that township granting perpetual rights for that...

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See Also

Agence du revenu du Québec v. 102751 Canada Inc., 2021 QCCA 605

The taxpayer (Mobile), which was owned by a German family, sold its two Toronto properties in 2002 and 2003 for $7.3 million, with most of that...

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Richards v. The Queen, 2019 TCC 289

The main source of income of the taxpayer and her husband until they separated in 2010 was dividends paid by two family corporations (“JEL”...

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Rio Tinto Alcan Inc. v. The Queen, 2016 TCC 172, aff'd 2018 FCA 124

The taxpayer, a Canadian public company listed on the TSX, NYSE and LSE, incurred fees (mostly of investment dealers, law firms, and a French...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(bb) investment dealer fees re advisability of making hostile takeover were fully deductible 529
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(cc) legal fees incurred in securing regulatory approval for a hostile bid related to the bidder's business of earning income from shares and interaffiliate sales 182
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(g) takeover bid circular costs did not qualify 102
Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Eligible Capital Expenditure fees incurred in order to acquire shares were excluded/butterfly expenses excluded as taxpayer was not in the business of implementing corporate reorganizations 365
Tax Topics - Income Tax Act - Section 169 - Subsection 169(2.1) raising general question of deductibility of fees and listing s. 20(1)(e) did not satisfy s. 165(1.11) 246
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e) failure to advance evidence showing allocation of fees to share consideration 139
Tax Topics - Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) expenses incurred in butterfly spin-off recognized as disposition expenses 63
Tax Topics - Statutory Interpretation - French and English Version finding common meaning of 2 versions of s. 20(1)(bb) 108

Mills v. The Queen, 2014 DTC 1138 [at 3371], 2014 TCC 153 (Informal Procedure), aff'd 2015 DTC 5127 [at 6377], 2015 FCA 255

The taxpayer incurred over $40,000 in legal expenses in an unsuccessful attempt to reduce child support payments made to his ex-wife. Masse DJ...

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Kondor v. The Queen, 2014 DTC 1215 [at 3870], 2014 TCC 303 (Informal Procedure)

The taxpayer owned 50% of the shares of a corporation ("DPX") which made heavily leveraged investments. The taxpayer's wife expected to receive...

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Ironside v. The Queen, 2014 DTC 1002 [at 2505], 2013 TCC 339

The taxpayer incurred substantial legal fees to defend unsuccessfully against proceedings by the Alberta Securities Commission respecting false or...

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Lacroix v. The Queen, 2014 DTC 1056 [at 2941], 2013 TCC 312 (Informal Procedure)

The taxpayer was a shareholder in a corporation ("Canadevim"), and incurred legal fees contesting Canadevim's assignment in bankruptcy, a GST/QST...

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Kelso Patry v. The Queen, 2013 DTC 1142 [at 757], 2013 TCC 107 (Informal Procedure)

The taxpayer, a physician, sought retribution against an arbitrator who had ruled against her in a medical dispute. The arbitrator successfully...

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Audet v. The Queen, 2012 DTC 1208 [at 3556], 2012 TCC 162 (Informal Procedure)

The taxpayer sold his shares in a corporation for $300,000 but was only paid $25,000. In subsequent debt restructuring proceedings under the...

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Sarophim v. The Queen, 2012 DTC 1124 [at 3131], 2012 TCC 92 (Informal Procedure)

Lamarre J. disallowed the taxpayer's deduction of legal fees connected with defending against an action to vary spousal support orders. Lammare...

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Potash Corporation of Saskatchewan Inc. v. The Queen, 2011 DTC 1163 [at 873], 2011 TCC 213

The taxpayer incurred legal and accounting fees in 1997 and 1998 of approximately $1.9 million in connection with a complicated reorganization of ...

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Trignani v. The Queen, 2010 DTC 1153 [at 3301], 2010 TCC 209 (Informal Procedure)

The taxpayer incurred legal costs in the course of his 2006 divorce proceedings, which centered around custody of the couple's child. An interim...

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Bilodeau c. La Reine, 2008 DTC 2870, 2004 TCC 685

Before going on to find that legal fees incurred by the taxpayer in successfully defending its president from criminal charges laid on the basis...

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Mackinnon v. The Queen, 2008 DTC 2052, 2007 TCC 658

After noting (at para. 25) the distinction "between fees incurred to affirm a right and those incurred to acquire a right", Angers J. found that...

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Loewig v. The Queen, 2006 DTC 3500, 2006 TCC 476 (Informal Procedure)

Legal fees incurred by the taxpayer in order to obtain a court order confirming that the taxpayer no longer was required to make child support...

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Truckbase Corporation v. The Queen, 2006 DTC 2930, 2006 TCC 215 (Informal Procedure)

In finding that professional fees incurred by a corporation for the preparation of shareholder agreements were fully deductible with the exception...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) corporate payment of shareholder agreement fees 98

Keating v. The Queen, 2005 DTC 743, 2005 TCC 296 (Informal Procedure)

Legal fees incurred by the taxpayer in bringing an oppression action against her estranged husband and his companies for depleting her company of...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 50 - Subsection 50(1) no obligation to take collection steps if collection not reasonably possible 110

Mulja v. The Queen, 2005 DTC 256, 2005 TCC 60

The taxpayer, who was employed by an Indonesian firm for part of 1998 until his employment was terminated, was found to have remained a factual...

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Leduc v. The Queen, 2005 DTC 250, 2005 TCC 96

$140,000 in legal fees incurred by the taxpayer, a practising solicitor, to defend against sexual abuse charges, were found not to have been...

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BJ Services Company Canada, the successor to Nowsco Well Service Ltd. v. The Queen, 2004 DTC 2032, 2003 TCC 900 (TCC)

After receiving an unsolicited hostile bid from another public company (BJ"), the taxpayer retained legal and accounting advisers (whose fees were...

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Rona Inc. (anciennement Groupe Rona Dismat Inc.) c. La Reine, 2003 DTC 979, 2003 TCC 121

Professional fees incurred by the taxpayer in seeking to expand its distribution network by making acquisitions (typically through share...

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Continental Lime Ltd. v. The Queen, 99 DTC 1154, [1999] 3 CTC 2525 (TCC)

The taxpayer was the successor by amalgamation to a holding company ("SB Holdings") and its subsidiary ("SB Canada"). When a minority shareholder...

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Coté v. The Queen, 99 DTC 5215 (FCTD)

A research program supervised by the taxpayer, who was associated with a Montreal hospital, was found to be a business in itself that was intended...

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Kruco Inc. v. The Queen, 98 DTC 1568, [1998] 3 CTC 2319 (TCC)

The taxpayer, which held 32% of the outstanding common shares of another privately owned corporation ("Kruger") brought a statutory oppression...

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Neeb v. The Queen, 97 DTC 895 (TCC)

Legal fees incurred by the taxpayer in unsuccessfully defending narcotics charges were non-deductible as being of a personal nature (he was not...

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Graham Construction Engineering (1985) Ltd. v. The Queen, 97 DTC 342 (TCC)

Professional fees incurred in connection with a share reorganization of the taxpayer in which its shareholders transferred their shares to a...

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Boulangerie St-Augustin Inc. v. The Queen, 95 DTC 164 (TCC), briefly aff'd 97 DTC 5012 (FCA)

Legal and accounting fees paid by the taxpayer in connection with the preparation of management circulars, which were sent to shareholders in...

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412237 Ontario Ltd. v. The Queen, 94 DTC 1022, [1994] 1 CTC 2177 (TCC)

The taxpayer paid legal and accounting fees of $110,844 and $19,940, respectively, incurred by its principal shareholder as a result of his breach...

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Sommers v. The Queen, 93 DTC 1489, [1993] 2 CTC 3122 (TCC)

Legal expenses incurred by the taxpayer in successfully defending against charges brought under s. 239 arising out of his failure to report...

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Bayer v. MNR, 91 DTC 1035, [1991] 2 CTC 2304 (TCC)

Legal expenses incurred by the taxpayer in obtaining a court order which reduced the amount of alimony payments which he was required to make to...

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Pappas Estate v. MNR, 90 DTC 1646, [1990] 2 CTC 2132 (TCC)

Legal expenses incurred by an estate with an extensive portfolio of investments in connection with obtaining probate; determining the extent of the...

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National Starch and Chemical Corp. v. Commissioner of Internal Revenue (1990), 93 T.C. 67

The petitioner, whose shares were traded on the NYSE, incurred legal fees of $490,000 and a fee of $2.2 million from Morgan Stanley (primarily for...

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Belair v. MNR, 89 DTC. 429, [1989] 2 CTC 2186 (TCC)

Legal and accounting fees which the individual taxpayer incurred in the enforcement of his rights under a shareholders' agreement, which...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 84 - Subsection 84(3) deemed dividends arose only as the shares were actually redeemed 110

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...

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C.I.R. v. Carron Co. (1968), 45 T.C. 18 (H.L.)

The day-to-day conduct of the business of the taxpayer was significantly hampered by its 1773 charter, which limited its borrowing powers to...

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Morgan v. Tate & Lyle Ltd., [1955] A.C. 21 (H.L.)

A company engaged in a sugar refining business was entitled to deduct expenses of propaganda campaign directed against the nationalization of the...

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Hallstroms Pty Ltd. v. Federal Commissioner of Taxation (1946), 8 A.T.D. 190 (H.C.)

The taxpayer reorganized its affairs in order to commence manufacturing and selling a superior type of refridgerator upon the expiry of the patent...

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Archibald Thomson, Black and Co. Ltd. v. Batty (1919), 7 T.C. 158 (Ct. of Ses. (2nd Div.))

A company, which after a history of losses had become profitable, was precluded from paying dividends because of a substantial deficit. In order...

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Administrative Policy

12 March 2002 Internal T.I. 2001-0094067 F - DEDOMMAGEMENT - TITRE DE PROPRIETE

After his discovery that his separated common-law spouse (Madame) was selling a property in which he had a ½ co-ownership interest, Monsieurs...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 54 - Proceeds of Disposition damages received for use of a property contrary to the recipient’s co-ownership right were tax-free receipts 194
Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) damages received for separated spouse’s unlawful use of taxpayer’s property were tax-free receipts 132

25 July 2019 External T.I. 2018-0787011E5 - Spousal support - legal expenses & lump-sum awards

In prior years, an individual had deducted legal fees incurred to obtain spousal support. However, such proceedings resulted in a lump sum award...

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22 May 2014 Ponoka Liason Meeting Roundtable, 2014-0528451C6 - Cost of Making Voluntary Disclosure

This was a follow-up query on 2012-0437831E5, indicating that voluntary disclosure costs were not deductible, as they were neither incurred to...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(cc) costs of voluntary disclosure incurred by business 80
Tax Topics - Income Tax Act - Section 60 - Paragraph 60(o) costs of voluntary disclosure incurred by business 80

17 October 2014 External T.I. 2014-0532121E5 F - Frais professionnels - Divulgation volontaire

Are legal or accounting expenses incurred respecting a voluntary disclosure deductible? Before indicating that fees incurred once CRA indicates...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 60 - Paragraph 60(o) fees become deductible from CRA indicating it will reassess 122

16 June 2014 STEP Roundtable, 2014-0523061C6 - Trust audit issues

In a discussion of common audit issues, CRA stated:

In document 2013-047756117 we provided advice on the deductibility of carrying charges...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(21) capital gain distributed to different beneficiary 137
Tax Topics - Income Tax Act - 101-110 - Section 105 - Subsection 105(1) benefit conferred when trust shares redeemed at undervalue 196
Tax Topics - Income Tax Act - Section 112 - Subsection 112(3.2) taxpayer stuck with two-transaction form 155
Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts executors lacked power to make gift 92
Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) settlor taking back undervalued freeze shares 76

5 December 2012 Internal T.I. 2012-0451331I7 F - Déductibilité de frais juridiques

Legal expenses incurred by the individual taxpayer when X (likely, a corporation of which the taxpayer was a shareholder, although this is not...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 60 - Paragraph 60(o) sales tax disputes not covered; expenses start running from audit review 120

27 February 2012 External T.I. 2012-0435081E5 - Act'ing Fees for Private Entpr BusCombinationCosts

Legal and accounting fees associated with a business combination which would have been required to be capitalized under old Canadian GAAP but...

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6 February 2012 External T.I. 2012-0434071E5 F - Honoraires professionnels - PDV

After noting that professional fees incurred under the voluntary disclosure program are deductible under s. 60(o) once CRA commences its review,...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 60 - Paragraph 60(o) professional fees incurred under VDP are deductible under s. 60(o) once CRA commences its review 109

31 March 2011 Internal T.I. 2011-0291701I7

Expenses incurred by a public corporation with respect to an unsuccessful bid to acquire another public company were capital expenditures on the...

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8 October 2010 Roundtable, 2010-0373641C6 F - frais juridiques engagés par des conjoints de fait

Although there is no legislation providing for the payment of support between common-law partners in the event of separation, Mr. X and Ms. X...

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20 June 2007 Internal T.I. 2007-0233551I7 - Deductibility of Transaction Costs

Professional fees (including fees for audit services) incurred by a Canadian-controlled private corporation in connection with a proposal to...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(cc) auditor fees not deductible where no report 42

6 October 2006 APFF Roundtable Q. 21, 2006-0195981C6 F - Deductibility of Professional Fees - Reorg.

Fees for legal opinions and fairness opinions obtained by a public corporation in connection with a proposed offer to repurchase a portion of its...

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16 March 2006 External T.I. 2005-0133301E5 F - Arrérages pension alimentaire reçus par succession

Legal fees incurred by an estate in reaching a settlement of its claim against the ex-husband of the deceased for arrears of support for the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(b) support arrears received by estate were tax-free 26

4 November 2005 External T.I. 2004-0108271E5 F - Frais juridiques-105(2)

Regarding rights that arose under the will of the taxpayer's spouse as a special legacy, CRA indicated that only the part of the legal costs that...

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11 October 2005 External T.I. 2005-0148281E5 F - Déductibilité de dépenses

In finding that accounting fees related to the preparation by a parent of consolidated financial statements for the group were generally...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(24) s. 248(24) does not affect deductibility of fees for preparing consolidated financials 89
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense periodic (every 3 years) required actuarial valuations were currently deductible 83

8 June 2004 Internal T.I. 2004-0067401I7 F - Dépenses d'une entreprise illégale

The taxpayer was charged, convicted and imprisoned regarding an illegal activity, along with having the equipment of that business seized and...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 9 - Computation of Profit onus on taxpayer, who did not keep records, to displace the net worth assessment method results 177
Tax Topics - General Concepts - Onus onus on taxpayer, who did not keep records, to displace the net worth assessment results, with documentation or other “acceptable evidence” 130
Tax Topics - Income Tax Act - Section 20 - Subsection 20(16) terminal loss when illegal equipment was forfeited to the Crown by court order 122
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Disposition of Property disposition when illegal equipment was forfeited to the Crown by court order, rather than when it was seized by the RCMP 167

10 May 2004 Internal T.I. 2003-005362

Professional fees incurred by two corporations in connection with their merger and incurred after they decided to commit to the transaction would...

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8 November 2005 Internal T.I. 2004-0109351I7 F - Frais juridiques - pension alimentaire

The taxpayer incurred legal costs in order to collect arrears of support (for the benefit of children born of the marriage) from her ex-spouse, to...

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3 December 2004 External T.I. 2004-0089341E5 F - Intérêts et frais juridiques

In finding that fees of lawyers and experts incurred by the taxpayer, in in connection with bringing an action to recover a legacy payable...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) interest on amount held in court until judgment rendered was contingent, and non-includible, until judgment rendered 159

18 December 2003 Internal T.I. 2003-0045227 F - FRAIS JURIDIQUES-PENSION

The taxpayer, who had been receiving support for their two children from her ex-husband pursuant to a court-approved agreement, was informed of...

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10 March 2003 Internal T.I. 2002-0172187 F - DEDUCTIBILITE DES INTERET

Legal fees incurred respecting the repayment of a loan were non-deductible, but might be allowable as eligible capital expenditures.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) interest on debenture issued in payment of interest, was non-deductible 118
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(f) premium (termed additional interest”) was payable even if no early repayment, and qualified under s. 20(1)(f) 200
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) reiteration of position re deductibility of participating interest post-Sherway 91
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Dividend premium payable on debenture repayment based in part on the quantum of debtor’s equity was not a dividend 242

10 January 2003 External T.I. 2002-0143315 F - FRAIS LEGAUX DEDUCTIBILITE

A building contractor carried out renovation work for a customer who, a few years later, took legal action against the contractor. The dispute...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Start-Up and Liquidation Costs estate could deduct damages incurred in the course of business of the deceased 201

6 February 2002 External T.I. 2001-0105605 - Tax Treatment of Transaction Costs

Discussion of the deductibility of professional fees incurred respecting advice on issues associated with a takeover or sale, advice on the tax...

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4 October 1994 External T.I. 9421425 - DEDUCTIBILITY OF FEES

"Legal fees incurred prior to the commencement of a business and those included with amounts paid upon a court settlement relating to a proposed...

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13 May 1994 External T.I. 9404425 - DEDUCTIBILITY OF LEGAL FEES

Whether legal fees incurred in opposing efforts by a Medical Association to prevent a physician from practising medicine, as well as legal fees...

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29 October 1991 Memorandum (Tax Window, No. 12, p. 13, ¶1557)

Cost incurred in obtaining an advance income tax ruling will be deductible if they relate to a business of the taxpayer and the transactions in...

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90 C.R. - Q15

In the determination of business or property income, legal, accounting and other similar expenses are representation, including expenses incurred...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 60 - Paragraph 60(o) 23

89 CR - Q10

"Costs incurred by a corporation in resisting a hostile takeover attempt are ordinarily incurred for the purpose of maintaining the ownership...

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81 CR - Q.40

The cost of winding-up a company cannot be said to be laid out to earn income and thus is not deductible either as a current operating expense or...

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IT-99R5 "Legal and Accounting Fees"

IT-143R3 "Meaning of Eligible Capital Expenditure"

Discussion of legal fees incurred in connection with reorganizations (para. 13), share acquisitions (para. 23).

IT-341R2 "Expenses of Issuing or Selling Shares, Units in a Trust, Interests in a Partnership or Syndicate, and Expenses of Borrowing Money" under "Expenses Incurred in the Course of an Issuance or Sale of Shares, Units or Interests" and under "Expenses Incurred in the Course of Borrowing Money"

Articles

Gabrielle St-Hilaire, "Extinguishing One Controversy While Stoking Another in Nadeau", 14 Canadian Current Tax, Vol. 14, No. 10, July 2004, p. 109.

David W. Smith, "Corporate Restructuring Issues: Public Corporations", 1990 Corporate Management Tax Conference Report, pp. 6:39-6:51

Discussion of deductibility of legal fees incurred in connection with take-over bids.