The taxpayer was a shareholder in a corporation ("Canadevim"), and incurred legal fees contesting Canadevim's assignment in bankruptcy, a GST/QST assessment against Canadevim, and a personal tax appeal.
Bédard J found that the taxpayer could not deduct the fees as property expenses under s. 9. The fees could not have been for earning income from the Canadevim shares, as Canadevim was bankrupt. Moreover, they were capital in nature, and therefore not deductible as per s. 18(1)(b).