Parker Brothers Textile Mills Limited v. The Queen, 2007 DTC 610, 2007 TCC 74 -- summary under Paragraph 20(1)(dd)

By services, 28 November, 2015

A fee which was found, on the evidence, to have been paid by the taxpayer to a consultant for investigating possible sites for a relocated manufacturing facility of the taxpayer was deductible under s. 20(1)(dd) notwithstanding that a related company actually acquired the site, constructed the building and leased the premises to the taxpayer. Hershfield J. stated (at para. 31):

"It is clear that what triggers the subject deduction is the cost of investigating the suitability of a site for the planned use of a hypothetical building that may never be built. If it matters not whether a building is ever built, how can it be said that the operation of a section depends on who builds it?"

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related company could acquire the site
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