Does a claim arising from an employee’s status as a non-executive director of a company be deductable from the proceeds of their legal defence?
Canada (Federal), Canada
The following excerpt is from Kurnik v. The Queen, 2019 TCC 206 (CanLII):
However, where the claim relates to payments arising from property or entitlements otherwise arising or accruing from the employee’s status as such and the legal defence is raised to retain such proceeds, deductibility is allowed: Chagnon v. HMQ, 2011 TCC 268 at paragraphs 17 and 18.
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