Is legal fee paid to collect WSIB back payment deductible?

client paid  $23000 to collect $54000 in WSIB payment. Can it be claimed since the WSIB payment is not taxable. His taxable income is $19000 from CPP & OAS without WSIB. The WSIB income ($54000) reduces his age amount to $1500 and he ends up owing. Any suggestions. I could not find the specific answer on CRA website.

Answer

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Yes, it is deductible. Put it on Line 232. The WSIB Benefit increases Line 236 Net Income which affects all kinds of credits and is not deducted until after Net Income on Line 250, so reducing the Line 236 with the cost to obtain this increased income is tax deductible.

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