Darling v. Canada (Attorney General), 2003 DTC 5489, 2003 FCA 282 (FCA) -- summary under Capital Expenditure v. Expense

Amounts that were collected by investors from the taxpayer by way of garnishment order as a result of a court finding that the taxpayer and his brother had fraudulently misled the investors and were required to repay a portion of the funds invested by the investors for the acquisition of a farm property, represented payments on account of capital and, therefore, were non-deductible.