Mazurkewich v. The Queen, 2007 DTC 1496, 2007 TCC 517 (Informal Procedure) -- summary under Paragraph 96(1)(g)

In allocating the losses incurred by a partnership comprising two men and their wives, the accountant allocated notional wages to the two wives, on the basis that they spent more time on the operations than their husbands, with the result that most of the partnership losses were allocated to the husbands rather than the wives. In rejecting this allocation method, Bowman C.J. noted that nothing was in fact paid to the wives, and this method resulted in an allocation of loss that was not in accordance with the partnership agreement, which contemplated allocation of profits and losses in accordance with the four equal partnership interests. Bowman C.J. also stated (at para. 14) that "generally I should have thought it open to question whether salary or wages paid by a partnership to a partner could be deducted as a business expense of the partnership".