Précis: The Taxpayer participated in a pyramid scheme known as Business In Motion International Corporation (“BIMIC”) in 2007, 2008 and 2009. She received proceeds of roughly $90,000 in those years which CRA added to her income and imposed gross negligence penalties. The taxpayer appealed to the Tax Court. The Tax Court concluded that the proceeds were in fact taxable but concluded that the taxpayer should be allowed a deduction for her costs of buying into the scheme. The gross negligence penalties were sustained.
Mazo v. R. - TCC: Taxpayer taxed on income from pyramid scheme, entitled to deduct costsREAD MORE »