Labow v. The Queen, 2010 TCC 408, 2010 DTC 1282 [at at 3956], aff'd 2012 DTC 5001 [at 6501], 2011 FCA 305 -- summary under Subparagraph 152(4)(a)(i)

The taxpayers disguised a tax deferral scheme as a health plan for their employee wives. Bowie J. found that the plans had not been entered into with considered judgment as to their commercial benefit to the taxpayers' firm: the amounts paid to the plan were set without regard to the actual benefit of the services; no attempt was made to seek competing bids from actual medical insurance providers; and the plan was not extended to non-spouse employees. Bowie J. found that the taxpayers had clearly understood that the amounts contributed were not business expenses; therefore, reporting them as such was a misrepresentation attributable to neglect or carelessness.