INCOME TAX |
Income Calculation |
Deductions |
Loo v. Canada
A-206-03
2004 FCA 249, Sharlow J.A.
29/6/04
5 pp.
Appeal from judgment of T.C.C. dismissing appeal from reassessments disallowing deductions for legal expenses-- Appellant one of 55 lawyers employed in B.C. by Department of Justice Canada suing employer on basis salary paid lower than that for lawyers at same classification level working in Toronto--Appellant claimed deduction for legal expenses pursuant to Income Tax Act, s. 8(1)(b)--T.C.C. dismissed appeal on basis s. 8(1)(b) not applicable because appellant received salary set out in contract--S. 8(1)(b) permits deduction for legal expenses incurred (1) to collect salary or wages owed, and (2) to establish legal entitlement to salary claimed--Appellant's claim falling within s. 8(1)(b) because trying to establish that, for services rendered, law requires he be paid more than he has been paid--Case distinguished from others where expenses incurred to establish right to promotion, to fight, reverse judicial, regulatory decision adversely affecting employment or professional status, or to seek financial compensation in connection with allegations of unlawful, wrongful acts by employer--Appeal allowed--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 8(1)(b).