Where a lawyer operates on a contingency fee basis, how is the fair market value of the work-in-progress determined? CRA responded:
Where a designated professional enters into an agreement to render services for contingency fees, some or all of the fees may not become ascertainable until after the taxation year in which the designated professional provided the services under the terms of the agreement. In these circumstances, the FMV of such work in progress of the designated professional at the end of the taxation year would be nil … [except where] it is possible, at the end of the year, to establish an amount that can reasonably be expected to be received after the end of the taxation year in respect of that work.