The appellant, a former municipal judge, sought to deduct legal expenses incurred in a motion for a declaratory judgment challenging his mandatory retirement at age 70 and seeking to accrue additional pension credits.
The Minister disallowed the deduction under paragraph 8(1)(b) of the Income Tax Act.
The Tax Court of Canada dismissed the appeal, finding that the legal expenses were not incurred to collect an amount owed for past services, but rather to establish a future right to perform duties and accrue pension credits, which does not qualify for the deduction.
