The taxpayer had been a director of corporation ("Canam") which had been struck from the corporate registry. Unaware of Canam's dissolution, CIBC maintained a corporate account for Canam, over which the taxpayer had sole signing authority. The taxpayer deposited a fraudulently altered cheque into the account in the amount of $350,000, and $118,000 of the money disbursed was not later recovered by CIBC. It was unclear whether the fraud had been perpetrated by the taxpayer or by an associate, Mr. Craine, who died before a proper investigation could be conducted. In finding that the $102,000 of funds that the taxpayer disbursed for the benefit of Mr. Craine was not income of the taxpayer, Hogan J. stated (at para. 48):
The cases of Nigro [(2007 DTC 224, 2006 TCC 589] and Obodoechina [2003 DTC 574, 2003 TCC 190)] establish that where the amounts of payments are substantiated as being attributable to another person and as having been made for that person's purposes, those amounts are not to be taxable in the hands of the taxpayer.