The taxpayer and his brother ran an illegal escort business through two corporations. The taxpayer incurred $48,164 in legal fees while unsuccessfully defending against charges for living on the avails of prostitution, which he deducted as employment expenses. Pizzitelli J denied the deduction of those amounts, as the taxpayer could not establish that the fees were incurred to establish a right to salary or wages. He stated (at para. 28):
The Appellant's argument is more remote [than in Wilson]. He is in fact saying that it was essential to resolve the criminal matter in order to enable him to preserve his dignity and reputation to continue work.