Tax Court disallows all of the fraudulent loss suffered by a lawyer

A Calgary lawyer suffered a loss of nearly $400,000 in a classic "419 scheme." (i.e., paying "processing" fees to recover large sums on behalf of knaves posing as clients).

Webb J. found that, because it was wholly unreasonable to be duped by the scheme, it was unreasonable to spend any amount to recover the sums - therefore, the entire loss was denied under s. 67.

Scott Armstrong.  Summaries of Ruff v. The Queen, 2012 TCC 105, appear under s. 67 and  s. 4(1)(a).