Cases
65302 British Columbia Ltd. v. Canada, 99 DTC 5799, [1999] 3 S.C.R. 804
In finding that considerations of public policy should not enter into a determination as to whether fines or penalties were deductible in...
Amway of Canada. Ltd. v. The Queen, 96 DTC 6135, [1996] 2 CTC 162 (FCA)
Strayer J.A. found that all amounts paid by the taxpayer to Revenue Canada in settlement of an enforcement action brought against it pursuant to...
TNT Canada Inc. v. The Queen, 88 DTC 6334, [1988] 2 CTC 91 (FCTD)
Fines paid by the taxpayer (a common carrier) under the Customs Act and the Excise Tax Act for having repair work done in the United States...
Day & Ross v. The Queen, 76 DTC 6433, [1976] CTC 707 (FCTD)
Fines paid by the taxpayer, a trucking company, for violations of highway weight restriction laws "resulted from the day to day operation of its...
See Also
McNeill v. The Queen, 99 DTC 280 (TCC), rev'd 2000 DTC 6211 (FCA)
In finding that damages paid by the taxpayer for breach of his non-compete covenant provided on a sale of his accounting practice to a firm of...
Neeb v. The Queen, 97 DTC 895 (TCC)
In finding that the taxpayer, who had carried on a narcotics business, could not deduct the value of hashish that had been seized by the American...
Port Colbourne Poultry Ltd. v. R., 97 DTC 237, [1997] 2 CTC 2480 (TCC)
After finding that a fine that the taxpayer agreed to pay as a result of an alleged environmental offence by one of its unsupervised employees was...
Sunys Petroleum Inc. v. The Queen, 96 DTC 1759, [1996] 3 CTC 2931 (TCC)
Penalties payable by the taxpayer (which operated gasoline stations) as a result of its failure to remit federal sales and excises taxes on some...
R. v. Castelli (1992), 11 OR (3d) 170 (Ont. Ct. G. D.)
In the absence of evidence that alleged kick-back payments made by the accused were not reasonable or necessary to generate income, it followed...
Atomic Transfer Ltd. v. MNR, 64 DTC 153 (TAB)
Fines paid by the taxpayer (a trucking company) for operating overweight trucks on the highways of various provinces were non-deductible because...
Administrative Policy
6 April 2001 External T.I. 2001-0074185 - DEDUCT. OF FINES AND PENALTIES
In light of the 6502 decision, the tests of "avoidability" and "public policy" discussed in IT-104R2 are no longer relevant, and as a result the...
IT-104R "Deductibility of Fines or Penalties"
IT-467R "Damages, Settlements and Similar Payments"
Damages payable as a result of a legal action or certain other wrongful conduct will not be deductible if to allow the expense would be contrary...