Tax & Legal

For an insolvent debtor, the insolvency administrator’s fees may be deductible as current or subsequent business expenses, provided the insolvency administrator’s management activities help to satisfy the insolvent debtor’s business liabilities. With this recently published decision, the Supreme Tax Court has clarified, in principle, an issue of great practical importance in cases of insolvency proceedings.

The Supreme Tax Court has held that no provision for the costs of following an official demand may be made until the deadline for complying with that demand has passed.

The finance ministry has extended a temporary provision allowing an averaged discount on the claim provisions of insurance companies to years ending on or before December 31, 2015.

The Supreme Tax Court has held that the costs to be taken into account in calculating the provision for future record retention costs can include an interest allocation in respect of the financing costs of the facilities used.

The Supreme Tax Court has confirmed the validity of an Income Tax Act provision requiring that restoration and rebuilding provisions be discounted.