The CRA reassessed him to deny various expense claims including the lawn and garden care, and Mr. Hébert appealed to the Tax Court of Canada.
The Tax Court judge allowed the lawn and garden care expenses. She concluded that these expenses were intended to insure that the home was in perfect condition to receive clients. (For certain other expenses, the Tax Court upheld the CRA’s position.)
This decision is significant because CRA auditors often deny these expenses, although nothing in the CRA’s publications specifically addresses this issue. The Hébert case can be cited in support of such claims. However, as an “Informal Procedure” decision of the Tax Court, it is not binding on the CRA.