Rona Inc. (anciennement Groupe Rona Dismat Inc.) c. La Reine, 2003 DTC 979, 2003 TCC 121 -- summary under Legal and other Professional Fees

Professional fees incurred by the taxpayer in seeking to expand its distribution network by making acquisitions (typically through share acquisitions) in order to add franchised stores to its network or acquire corporate stores, were on capital account. In the case of successful acquisitions, the professional fees were added to the costs of acquisition. Where the projects instead were abandoned (including a contemplated takeover bid), the costs nonetheless were capital outlays (which the Minister had treated as eligible capital expenditures).