CRA confirms deductibility of professional fees incurred to defend taxpayer’s position after acceptance of voluntary disclosure

Paragraph 60(o) of the Income Tax Act (Canada) allows a taxpayer to deduct professional fees “incurred in preparing, instituting or prosecuting an objection to, or an appeal in relation to, an assessment of tax […]”.  The CRA recently confirmed that this provision covers professional fees incurred to defend a taxpayer’s position once the taxpayer’s voluntary disclosure is accepted.  The CRA noted, however, that professional fees that relate to the filing of the voluntary disclosure are not deductible under this provision.


Prepared by: Florence Sauve

Florence Sauve is an associate practicing in the firm’s Toronto office. Her practice focuses on all aspects of taxpayer representation and tax litigation and also includes personal and corporate tax planning. Before joining Thorsteinssons LLP, Florence clerked at the Tax… more »