The Montreal courthouse is seen on March 27, 2019. A Quebec court judge has ruled against a law firm that tried to deduct the cost of a lavish wedding for the daughter of one of its lawyers as a business expense. THE CANADIAN PRESS/Ryan Remiorz

The Montreal courthouse is seen on March 27, 2019. A Quebec court judge has ruled against a law firm that tried to deduct the cost of a lavish wedding for the daughter of one of its lawyers as a business expense. THE CANADIAN PRESS/Ryan Remiorz

Law firm can’t deduct wedding costs as a business expense, Quebec court finds

Spiegel Sohmer could not write off the $75,000 it reimbursed to lawyer Robert Raich, judge rules

A Quebec judge has ruled against a law firm that tried to deduct the cost of a lavish wedding for the daughter of one of its partners as a business expense.

Judge Daniel Bourgeois of Quebec court ruled last month that the firm Spiegel Sohmer could not write off the $75,000 it reimbursed to lawyer Robert Raich and that Raich needs to pay taxes on the amount as a benefit.

The decision states that Raich, a tax lawyer, had argued that he’d thrown the sumptuous Montreal wedding party for his daughter Jacqueline in part to strengthen ties with the firm’s clients. His daughter testified that she hardly knew or didn’t know at all the business associates invited by her father.

“The marriage took place in Montreal because, (Raich) said, he wanted mainly to promote the interests of Spiegel Sohmer and demonstrate his appreciation to his clients and business associates,” the Jan. 15 decision said, noting that the daughter and her groom lived in the United States.

Raich claimed nearly half the cost of the $169,000 wedding on a firm expense account, reasoning that 97 of the 218 guests were his clients or business associates. The firm reimbursed him the $75,242 he sought, and claimed the amount on its 2012 tax filing.

Revenue Quebec took issue with the deduction and refused it on the basis that a wedding is clearly personal in nature.

Bourgeois agreed, noting that family events are generally considered to be personal, and that Raich failed to provide convincing evidence to prove the wedding was an exception.

“Despite the audacity displayed by Mr. Raich during his testimony, he did not in any way affect the presumption of validity of the assessments issued by Revenue Quebec,” the judgment read.

Furthermore, nobody from Spiegel Sohmer testified at trial to support the lawyer’s claims or prove the event represented a significant business opportunity, indicating a “certain lack of interest” in their former managing partner’s tax challenge, Bourgeois wrote.

His decision upheld the revenue agency’s tax assessment for the firm, as well as the decision to consider the reimbursement as a taxable benefit to Raich.

Morgan Lowrie, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Hannah Ankenmann, who works with k’awat’si Economic Development Corporation, winces as she received her first shot of the Pfizer vaccine administered by a Gwa’sala-‘Nakwaxda’xw Family Health nurse. (Zoe Ducklow photo)
North Island to get community wide vaccine clinics

Island Health will take a whole of community approach to immunization.

Port Hardy mayor Dennis Dugas. (Dennis Dugas photo)
Port Hardy mayor advocates for fish farm industry, talks impact on North Island

The Discovery Islands closures will certainly have an effect on Port Hardy, says Dugas.

An Island Health nurse prepares a dose of COVID-19 vaccine. (Photo courtesy Island Health)
Health authority opening 19 clinics to immunize Vancouver Island residents

Health authority anticipates more than 40,000 people will be immunized over the next month

Debra Lynn photo
Mysterious smoke cloud seen in Seavac Centre

Fire crews did a thorough sweep of the centre.

North Island Gazette file photo of Port McNeill council.
Heated conversation occurs at Port McNeill council over policy request

Port McNeill mayor Gaby Wickstrom wants to see a change in the… Continue reading

(The Canadian Press)
‘Worse than Sept. 11, SARS and financial crisis combined’: Tourism industry in crisis

Travel services saw the biggest drop in active businesses with 31 per cent fewer firms operating

Montreal Canadiens right wing Paul Byron (41) fights for control of the puck with Vancouver Canucks defenceman Quinn Hughes (43) during first period NHL action in Vancouver, Monday, March 8, 2021. THE CANADIAN PRESS/Jonathan Hayward
Captain Clutch: Horvat nets shootout winner as Canucks edge Habs 2-1

Vancouver, Montreal tangle again on Wednesday

A special committee has been appointed to look at reforming B.C.’s police act and is inviting the public to make submissions until April 30, 2021. (Black Press media file)
Have thoughts on B.C.’s review of the provincial Police Act?

Submissions will be accepted until April 30

Cottonwoods Care Home in Kelowna. (Google Maps)
New COVID-19 outbreak at Kelowna care home includes fully vaccinated seniors: Henry

Two staff and 10 residents tested positive at Cottonwoods Care Centre

Excerpts from a conversation between Bria Fisher and the fake truLOCAL job. Fisher had signed a job agreement and was prepared to start work for what she thought was truLOCAL before she learned it was a scam. (Contributed)
B.C. woman warning others after losing $3,000 in job scam

Bria Fisher was hired by what she thought was a Canadian company, only to be out thousands

Provincial health officer Dr. Bonnie Henry and Health Minister Adrian Dix provide a regular update on the COVID-19 situation, B.C. legislature, March 2, 2020. (B.C. government)
B.C.’s COVID-19 cases: 545 Saturday, 532 Sunday, 385 Monday

Focus on Prince Rupert, Lower Mainland large workplaces

Rising accident rates and payout costs have contributed to billion-dollar deficits at ICBC. (Comox Valley Record)
B.C. appealing decision keeping ICBC injury cases in court

David Eby vows to ‘clip wings’ of personal injury lawyers

Anyone with information is asked to call Nanaimo RCMP at 250-754-2345 or contact Crime Stoppers by calling 1-800-222-8477 or submitting a tip online at www.nanaimocrimestoppers.com.
21-year-old motorbike rider dies after crash with ATV on Nanaimo back road

Incident happened Sunday afternoon near Boomerang Lake

Most Read