General discussion as to whether damages paid to the local municipality to repair damages to sewers caused by the corrosive waster discharged by the taxpayer’s industrial operation would be deductible. CCRA comments included that:
[T]he reimbursement of costs incurred by the City to repair sewers should receive the same tax treatment as the cost of repairing environmental damage carried out by the company itself. …
[If] the expenses [were] incurred voluntarily or with the intention of discharging a legal obligation made to restore a site or repair environmental damage that was caused directly by the company's operations … [then] those expenses would generally be considered a cost of doing business.