The taxpayer was assessed for amounts that she embezzled from her employer in 2000, declared bankruptcy because of this claim against her and, after her discharge (without having paid any of the assessment), began paying back to her employer the amount she had taken pursuant to a court order.
In finding that the taxpayer was not entitled to deduct amounts paid by her pursuant to the court order by virtue of s. 67, Bowman C.J. indicated (p. 2734) that under "a textual, contextual and purposive interpretation", it would be "unreasonable for her to be able to deduct the repayments of amounts on which she has never paid tax."