Précis: At issue in this appeal were roughly $100 million in expense claims in two related transactions: one acquisition transaction in 2003 and one disposition in 2004. The claims involved many different types of expenses, but the bulk (roughly $50 million) represented fees paid to investment bankers. The Tax Court held that the fees paid prior to the transactions having been the subject of a commitment to proceed were deductible as “Oversight Expenses” since the taxpayer was aggressively involved in the pursuit of increased shareholder value on a continuous basis. Costs are under reserve pending submissions from the parties.
Rio Tinto Alcan v. R. - TCC: Tax Court allows pre-commitment investment banker feesREAD MORE »