A client paid a lawyer over 8K to follow up on a denial Service Canada for a disability pension plan and for all the professional services rendered. The client won the case and received over 26 k in 2021 disability benefits.
Can the client claim all legal fees paid?
As per CRA site line 23200,
You can claim the following expenses:
- fees including any related accounting fees you paid:
- for advice or assistance to respond to the CRA when the CRA reviewed your income, deductions, or credits for a year
- to object or appeal an assessment or decision under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan, or the Quebec Pension Plan
- fees that you paid to collect (or establish a right to) a retiring allowance or pension benefit. You can claim only up to the retiring allowance or pension income you received in the year minus any part of these amounts transferred to a registered retirement savings plan (RRSP) or registered pension plan (RRP). You can carry forward the legal fees you cannot claim in the year for up to seven years